Real Estate Ownership System for Non-Saudis

BY Nassr Albarakati law firm · 03 August 2025

Introduction:

In line with the rapid economic growth witnessed by the Kingdom of Saudi Arabia in recent times, the updated system for the ownership of real estate by non-Saudis has been issued, which regulates the real estate rights of individuals and companies. This updated system contributes to the development of real estate investment and supports national development, as it will be effective at the beginning of next year 2026.

Objectives:

  1. Working to stabilize foreign investment by enabling the actual ownership of economic facilities.
  1. Attracting foreign investment, activating the real estate market and raising its efficiency.
  1. Raising the contribution of real estate investment in the Saudi economy, and working to diversify incomes.
  1. Expanding urban sprawl and raising the quality of urban life.
  1. Reducing the burden on citizens and increasing their chances of owning the property by increasing the real estate supply.

Key Features of the System:

The Saudi regime allowed non-Saudis to own the property and acquire other sample rights on the property in the Kingdom of Saudi Arabia, but that leave is limited by the geographical scope in which non-Saudis may own the property, the types of those rights, the percentage of ownership, and the maximum period of permission prescribed for the use of the property, and all the above is issued by a decision .Council of Ministers

Expanding System Inclusivity:

This system was characterized by inclusiveness over the previous one; The previous regime only included individuals, non-Saudi investors, and diplomatic representations, while the updated regime included individuals, for-profit entities, non-Saudi companies, diplomatic representatives, and Saudi companies whose ownership is shared by a foreigner, and included ownership in all types of real estate, unlike the previous regime, which was limited to the investor's ownership of the property necessary to practice the activity and necessary for his private residence and the residence of his employees, while the resident is only for his own residence.

Geographic Scope of Ownership:

The new system allows ownership in specific areas according to the document of geographical ranges, which shows all areas available for ownership and real estate rights, unlike the previous system, which allowed ownership in all regions of the Kingdom, other than Mecca and Medina, in addition to that the new system allows ownership and use of Muslims only in specific areas, unlike the previous system did not allow ownership but use only.

Corporate Position:

A company not listed on the Saudi Stock Exchange may be incorporated in accordance with the provisions of the Saudi Companies Law, whose capital is jointly owned by one or more persons of a natural or legal capacity who do not have Saudi nationality. Owning the property or acquiring other rights in kind on the property, within the geographical scope specified in the system.
The application of the provisions of this Law shall not prejudice the provisions of the Distinguished Residence Law, or the regulation of the ownership of real estate by citizens of the GCC States in the member States of the GCC; For the purpose of housing, investment, or other applicable regulations that grant a non-Saudi person better rights, in relation to owning the property, and acquiring other rights in kind on it.
Catch-up: Non-Saudi ownership of the property or acquisition of other rights in kind does not entail ownership of the property in the Kingdom; Any rights or privileges other than those established by law for the owner of the right in kind.

Commitment:

The non-Saudi company, or non-Saudi non-profit entity, must register with the competent authority before owning the property or acquiring other rights in kind on the property in the Kingdom; According to what is specified by the regulation, and the ownership is valid only after real estate registration.

Sanctions:

Violators of the law shall be punished by warning and fine; And this is according to a schedule that determines violations and penalties determined by the regulation.

Regulation:

The Council of Ministers shall issue the executive regulation within (one hundred and eighty) days from the date of publication of the Law in the Official Gazette, on the basis of which it shall determine the procedures for the acquisition by a non-Saudi of real rights over a property in the Kingdom, the requirements for enforcing the provisions of the Law prescribed for a non-Saudi who is not resident in the Kingdom, the amount of the fee mentioned in Article (IX) of the Law, the actions subject to zero fees and the necessary conditions, conditions and controls for that.
The system shall enter into force one hundred and eighty days after the date of its publication in the Official Gazette.