Saudi Arabia expands real estate ownership for non-Saudis

The Saudi government approved a landmark new law regulating real estate ownership by non-Saudis, which was published on 25 July in the official gazette. This Law of Real Estate Ownership by Non-Saudis will come into force 180 days after publication, anticipated in January 2026.

The law repeals the previous 2000 Law of Real Estate Ownership and Investment by Non-Saudis and introduces a structured framework allowing non-Saudi individuals and entities, whether residents or non-residents, to own or acquire real estate rights within specially designated zones across the Kingdom.

This reform aligns closely with Saudi Arabia’s Vision 2030 goals, which seeks to attract foreign capital, expand the real estate market and promote urban development, all while maintaining regulatory safeguards.

Under the new framework, ‘non-Saudi’ is defined broadly to include anyone without Saudi citizenship, as well as foreign legal entities. The Council of Ministers retains flexibility to expand this definition to ensure that various types of foreign investors can be accommodated.

The Council of Ministers, in coordination with the Real Estate General Authority and other bodies, will identify specific geographic zones where non-Saudis are permitted to acquire property or property rights. These zones are expected to include high-demand urban areas, such as in cities like Riyadh and Jeddah, but not sensitive cities and regions like Makkah and Madinah. Outside the approved zones, foreign ownership will generally not be allowed.

Foreign investors may obtain a range of real estate rights under the new law, including full ownership of property, as well as lesser rights such as long-term leaseholds, usufruct rights, easements and similar interests. The Council of Ministers may impose regulatory conditions and limits.

Foreign residents will be permitted to own properties within the designated zones, as well as one residential property in the Kingdom for personal use, outside of the designated zones. Foreign-owned business entities – listed and unlisted foreign companies, licensed investment funds and special-purpose vehicles – will be permitted to acquire real estate necessary for their business activities and to house their employees, subject to Saudi Capital Market Authority regulations.

All real estate purchases or rights acquisitions by non-Saudis will have to be registered with the competent authority and recorded in the national Real Estate Registry to be legally effective. The new law also authorises the Real Estate General Authority to levy a real estate transfer fee on disposals of property by non-Saudis, up to a maximum of 5% of the property’s value.

Companies and investors should monitor the detailed Implementing Regulations that will set out the procedures for registration, fee mechanisms, the boundaries of allowed zones and conditions on various property rights. These will be issued within 180 days of the law’s publication.