Real estate investment in Saudi Arabia is witnessing rapid development under new legislation aimed at enhancing the attractiveness of the real estate market, increasing transparency, and protecting rights. Among the most prominent of these laws is the Non-Saudi Real Estate Ownership Law, issued by Royal Decree No. (M\/14) dated 19\/1\/1447 AH (corresponding to 2026 CE). This law established a modern regulatory framework that allows foreigners to own real estate in Saudi Arabia according to clear regulations and procedures that consider the interests of investors and support the objectives of the Kingdom’s Vision 2030.<\/p>\n
This law is a significant step towards promoting foreign investment in the Saudi real estate sector by regulating ownership processes and the acquisition of real estate rights, while providing a more transparent and stable investment environment.<\/p>\n
The Non-Saudi Real Estate Ownership Law in Saudi Arabia is the legal framework regulating foreign ownership of real estate and real estate investment in the Kingdom. It defines the conditions and procedures for ownership, the rights granted to non-Saudi investors, and the regulations, fees, and penalties governing this activity, thereby enhancing the attractiveness of the Saudi real estate market for both local and international investors.<\/p>\n
The system offers numerous advantages to non-Saudi investors and individuals, most notably:<\/p>\n
Access to one of the largest real estate markets in the region.<\/p>\n
Benefiting from mega-projects such as NEOM, the Red Sea Project, and Qiddiya.<\/p>\n
Enhancing the legal stability of real estate ownership transactions.<\/p>\n
Clarifying regulatory and supervisory procedures.<\/p>\n
Protecting real estate rights through registration in the Real Estate Registry.<\/p>\n
Article 8 of the system also affirms that ownership or any real right is not valid until registered in the Real Estate Registry, thus enhancing trust and security for those involved.<\/p>\n
First: Non-Saudi Individuals<\/p>\n
Article 2 of the system permits non-Saudis to own real estate or acquire real rights to it, in accordance with the applicable regulations.<\/p>\n
Article 2 also grants non-Saudis legally residing in the Kingdom the right to own one residential property outside the geographical boundaries specified by the Council of Ministers, with the exception of Mecca and Medina.<\/p>\n
Article 7 of the Implementing Regulations clarifies that non-Saudi spouses and children are considered dependents of the owner for the purposes of this residential ownership.<\/p>\n
Second: Non-Saudi Companies<\/p>\n
Article 8 of the Law and Article 3 of its Implementing Regulations stipulate that non-Saudi companies may own real estate after fulfilling the required registration and disclosure procedures.<\/p>\n
This is considered one of the most important incentives for attracting foreign direct investment to the Saudi real estate sector.<\/p>\n
Third: Saudi Companies with Foreign Partnerships<\/p>\n
According to Article 3 of the Law and Article 8 of its Implementing Regulations, Saudi companies in which non-Saudi investors participate in the capital may own the necessary real estate:<\/p>\n
To conduct their business activities.<\/p>\n
To provide housing for their employees.<\/p>\n
In some cases, obtaining approval from the Ministry of Investment is required before ownership can be acquired.<\/p>\n
Are non-Saudis entitled to own property in Mecca and Medina?<\/p>\n
Yes, but under specific regulations.<\/p>\n
Article 2 of the Law stipulates that ownership of real estate or acquisition of real rights in Mecca and Medina is restricted to non-Saudi Muslims.<\/p>\n
Article 3 of the regulations also permits certain Saudi companies, whose capital is jointly owned by one or more natural or legal persons who do not hold Saudi citizenship, to own property in these two cities in accordance with the applicable regulations.<\/p>\n
Procedures for Non-Saudis to Own Real Estate in Saudi Arabia<\/p>\n
Procedures for Non-Resident Individuals<\/p>\n
According to Article 2 of the Implementing Regulations, the following must be obtained:<\/p>\n
Obtain a digital identity card.<\/p>\n
Open a bank account within the Kingdom.<\/p>\n
Obtain a Saudi contact number linked to the digital identity card.<\/p>\n
Procedures for Non-Saudi Companies<\/p>\n
According to Article 3 of the Implementing Regulations, the following must be obtained:<\/p>\n
Register with the Ministry of Investment.<\/p>\n
Disclose direct and indirect owners.<\/p>\n
Appoint a legal representative<\/p>\n
Open a bank account within the Kingdom.<\/p>\n
Obtain a legal registration number.<\/p>\n
Procedures for Foreign Non-Profit Entities<\/p>\n
According to Article 4 of the Implementing Regulations, registration with the National Center for the Development of the Non-Profit Sector and fulfillment of disclosure and legal representation requirements are required.<\/p>\n
Procedures for Other Legal Entities<\/p>\n
Article Five of the Implementing Regulations mandates that they register with the competent authority designated by the Council of Ministers and fulfill all disclosure and registration requirements.<\/p>\n
Electronic Real Estate Ownership Portal<\/p>\n
Among the most prominent regulatory developments is Article Six of the Implementing Regulations, which establishes an electronic portal linked to the Real Estate Registry. This portal facilitates the following:<\/p>\n
Submission of ownership applications.<\/p>\n
Follow-up on procedures.<\/p>\n
Electronic execution of financial transactions.<\/p>\n
Completion of ownership transfer procedures and issuance of deeds.<\/p>\n
This enhances the speedof procedures and improves the efficiency of digital real estate services.<\/p>\n
Fees for Non-Saudi Ownership and Disposition of Real Estate<\/p>\n
Article Nine of the Regulations stipulates a fee on certain real estate transactions by non-Saudis.<\/p>\n
Article Nine of the Implementing Regulations sets a fee of 2% of the value of the real estate transaction for all types of real rights and uses in:<\/p>\n
Riyadh City.<\/p>\n
Jeddah Governorate.<\/p>\n
Makkah City.<\/p>\n
Madinah City.<\/p>\n
Cases Exempt from Real Estate Fees<\/p>\n
Article 10 of the Implementing Regulations clarifies several cases to which a 0% fee applies, most notably:<\/p>\n
Division of an estate.<\/p>\n
Execution of final court judgments.<\/p>\n
Expropriation for public benefit.<\/p>\n
Transactions in favor of endowments and public entities.<\/p>\n
Certain transactions resulting from real estate development projects.<\/p>\n
Certain divisions of jointly owned properties.<\/p>\n
Penalties for Violating the Law on Non-Saudi Ownership of Real Estate<\/p>\n
Article 10 of the Law stipulates that violating the Law or its regulations may result in:<\/p>\n
A warning.<\/p>\n
A fine of up to 5% of the property value.<\/p>\n
The fine for the property in question is 10 million riyals.<\/p>\n
Article Eleven of the regulations stipulates the formation of a specialized committee to review violations and impose penalties, with the possibility of appealing to the Administrative Court within 60 days.<\/p>\n
Severe Penalties for Providing Misleading Information<\/p>\n
Among the most serious violations is that outlined in Article Twelve of the regulations concerning the provision of false data or information with the intent to acquire ownership.<\/p>\n
The penalties include:<\/p>\n
A fine not exceeding 5% of the value of the property, with a maximum of 10 million riyals.<\/p>\n
The sale of the property in question.<\/p>\n
Investigation by the Public Prosecution and adjudication by the competent court.<\/p>\n
How can we help you own property in the Kingdom?<\/p>\n
Given the numerous procedures and regulatory requirements related to non-Saudi property ownership in the Kingdom of Saudi Arabia, obtaining specialized legal advice before completing the purchase or investment process has become a crucial step to avoid regulatory risks and ensure the integrity of the procedures.<\/p>\n
At the Law Office of Mohammed Abdulrahman Abdullah Al-Khalawi, we offer specialized legal services in the real estate and investment sectors, including:<\/p>\n
Conducting property eligibility assessments and verifying compliance with the regulations and their implementing bylaws.<\/p>\n
Providing legal counsel to non-Saudi investors, individuals, and companies.<\/p>\n
Reviewing real estate contracts and agreements before their finalization.<\/p>\n
Representing clients before government agencies and other relevant authorities as needed.<\/p>\n
Assisting in completing registration and disclosure requirements stipulated in Article 8 of the Law and Articles 3, 4, and 5 of the Implementing Bylaws.<\/p>\n
Providing legal support regarding real estate fees and regulatory obligations as stipulated in Article 9 of the Law and Articles 9 and 10 of the Implementing Bylaws.<\/p>\n
Representing clients in real estate disputes and appealing decisions and penalties issued in accordance with Article 11 of the Law.<\/p>\n
At the Law Office of Mohammed Abdulrahman Abdullah Al-Khalawi, we believe that successful real estate investment begins with a sound legal foundation. Therefore, we strive to empower our clients to complete their real estate transactions and investments within the Kingdom with the highest levels of legal security and regulatory compliance.<\/p>\n
The system governing non-Saudi property ownership represents a significant leap forward in regulating foreign real estate ownership in Saudi Arabia. It provides a comprehensive legislative framework that combines investment promotion with the protection of the real estate market. Furthermore, the system enhances transparency and governance through real estate registration, an electronic portal, and disclosure requirements, making real estate investment in Saudi Arabia more transparent and attractive to both local and international investors.<\/p>\n
Disclaimer: The above content does not constitute legal advice, and the firm assumes no legal responsibility. For legal advice, please contact us.<\/strong><\/p>\n \n","protected":false},"excerpt":{"rendered":" Real estate investment in Saudi Arabia is witnessing rapid development under new legislation aimed at enhancing the attractiveness of the real estate market, increasing transparency, and protecting rights. Among the most prominent of these laws is the Non-Saudi Real Estate Ownership Law, issued by Royal Decree No. (M\/14) dated 19\/1\/1447 AH (corresponding to 2026 CE)….<\/p>\n","protected":false},"author":4,"featured_media":10310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-10309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"acf":[],"yoast_head":"\n