Saudi Arabia has published the full details of its property ownership law for non-Saudis in the official gazette Umm Al-Qura on Friday, following Cabinet approval earlier this month.
The law will take effect 180 days from publication and replaces previous foreign property ownership legislation issued under Royal Decree No. M/15 in 2000, the Saudi Gazette reported.
The legislation grants non-Saudis — including individuals, companies, and non-profit entities — the right to own property or obtain other real rights over real estate within designated geographic zones to be determined by the Cabinet.
Non-Saudis can own property in Saudi Arabia under new law published in official gazette
These rights include usufruct (beneficial use), leaseholds, and other real estate interests, but will be subject to controls and restrictions based on location, property type, and usage.
Ownership remains prohibited in certain locations and regions, particularly in Makkah and Madinah, except under conditions for individual Muslim owners.
The law states that all real estate rights that were legally established for non-Saudis prior to the regulation taking effect will be preserved.
The Council of Ministers — upon a proposal by the Real Estate General Authority and with the approval of the Council of Economic and Development Affairs — will define the allowable zones for foreign ownership and set upper limits on ownership percentages and durations for usufruct rights.
Foreign individuals legally residing in Saudi Arabia may own one residential property outside restricted areas for personal housing purposes. This provision does not apply to Makkah and Madinah.
The regulation includes provisions for corporate ownership. Non-listed companies with foreign shareholders, as well as investment funds and licensed special-purpose entities, will be permitted to acquire real estate throughout the Kingdom, including in Makkah and Madinah, provided the ownership supports operational needs or employee housing.
Listed companies and investment vehicles may also acquire property in line with Saudi financial market regulations.
Diplomatic missions and international organisations can own premises for official use and residence of their representatives, subject to Foreign Ministry approval and reciprocity conditions.
Non-Saudi entities must register with the competent authority before acquiring property. Ownership or real rights become valid only after formal registration in the national real estate registry.
The law introduces a real estate transfer fee of up to 5 per cent for transactions involving non-Saudis.
Sanctions for violations include fines up to SAR10 million and, in cases such as falsified information, the forced sale of the property with proceeds remitted to the state after deductions.
A committee under the Real Estate General Authority will be formed to investigate violations and impose penalties. Decisions of this committee can be appealed to the administrative courts within 60 days.
The law repeals a prior rule that prohibited GCC citizens from owning property in Makkah and Madinah, standardising rules for all non-Saudi entities under a single framework.
The executive regulations, which will detail implementation mechanisms and specify geographic boundaries and conditions, are expected to be issued within six months.
