Saudi Arabia has officially opened its doors to foreign property ownership with the implementation of the Law of Real Estate Ownership by Non-Saudis, which came into force on January 22, 2026. This landmark legislation represents one of the most significant reforms in the Kingdom’s real estate sector in decades, replacing the previous 2000 law that imposed strict limitations on foreign ownership.
For expatriates, investors, and businesses looking to establish a more permanent presence in Saudi Arabia, this new framework creates unprecedented opportunities. Whether you’re a resident wanting to buy a home, an investor seeking commercial opportunities, or a company needing premises for operations, the new law provides clear pathways to property ownership.
The reform aligns closely with Saudi Vision 2030 goals—attracting foreign capital, expanding the real estate market, spurring urban development, and diversifying the economy away from oil dependence. With major projects like NEOM, Qiddiya, and the Red Sea initiative underway, the timing couldn’t be more strategic.
Why This Law Matters
Under the previous 2000 law, foreign ownership was extremely limited. Non-Saudis could only acquire property under specific conditions—typically for licensed business operations—and faced requirements like a minimum investment threshold of SAR 30 million for development projects, prior approvals, and strict five-year development timelines.
The new law fundamentally changes this approach by:
- Removing the blanket restrictions on individual foreign ownership
- Eliminating the SAR 30 million minimum investment requirement for most buyers
- Introducing a transparent, zone-based system for foreign ownership
- Allowing residents to own one residential property outside designated zones
- Creating limited access for Muslims to own property in Makkah and Madinah
Who Can Own Property Under the New Law
The law extends ownership rights to several categories of non-Saudis, each with specific privileges and conditions.
Non-Saudi Residents
If you hold legal residency in Saudi Arabia (Iqama), you have the most flexible options:
- Own properties within designated geographic zones
- Own one residential property for personal use outside designated zones (except Makkah and Madinah)
- Muslim residents can purchase property within designated zones in Makkah and Madinah, subject to specific restrictions
Non-Residents
Foreign individuals living outside Saudi Arabia can also participate in the property market:
- Ownership is permitted within designated geographic zones
- A digital identity must be obtained through Saudi embassies and consulates abroad
- Applications are processed through the Saudi Properties portal after digital ID issuance
Foreign Companies and Entities
Foreign-owned business entities enjoy broader privileges to support their operations:
- Both listed and unlisted foreign companies can acquire real estate
- Licensed investment funds and special-purpose vehicles are eligible
- Properties can be acquired for business operations, commercial facilities, or employee housing
- These entities can own property even in Makkah and Madinah for approved purposes
- Companies must first register with the Ministry of Investment through the Invest Saudi platform
Saudi Companies with Foreign Ownership
Saudi-registered companies whose capital is owned by non-Saudi individuals or entities can own real estate, provided they comply with the Companies Law and registration requirements. Listed companies on Tadawul must also adhere to Capital Market Authority regulations.
Diplomatic Missions and International Organizations
These entities may own real estate based on reciprocity principles and subject to approval by the Ministry of Foreign Affairs.
Understanding Geographic Zones
A cornerstone of the new law is the Geographic Zones Document, which will define exactly where non-Saudis can own property. This document is issued by the Council of Ministers in coordination with the Real Estate General Authority (REGA) and other relevant bodies.
What Are Geographic Zones?
Geographic zones are specific areas within Saudi Arabia where non-Saudi ownership is permitted. These include sites and projects explicitly listed in the Geographic Zones Document, covering major cities, special economic zones, and development projects.
The document determines:
- Right of ownership: Full ownership of the property
- Other in-rem rights: Usufruct rights, easements, long-term leasehold interests, and similar transferable rights
When Will Zones Be Announced?
According to official announcements, the Geographic Zones Document will be published during the first quarter of 2026. This will include detailed maps showing specific locations where foreign ownership is authorized, along with any ownership limits for each area.
Expected Zone Locations
While the exact boundaries await official publication, zones are expected to prioritize:
- Major urban centers like Riyadh and Jeddah
- Mega-development projects (NEOM, Qiddiya, Red Sea Project)
- Special economic zones
- Areas with established infrastructure and investment potential
Special Rules for Makkah and Madinah
The two holy cities maintain special regulations due to their religious significance. While these areas remain largely restricted for foreign ownership, the new law introduces limited access:
- Muslim individuals (whether residents or non-residents) may own property within designated zones in Makkah and Madinah
- Saudi companies (even those with non-Saudi shareholders) may own property for approved purposes
- Non-Muslim foreigners cannot own property in Makkah and Madinah
- Ownership procedures follow the Non-Saudi Ownership Law and the Geographic Zones Document
How to Apply for Property Ownership
The Saudi Properties portal (saudiproperties.rega.gov.sa) is the official digital platform for all non-Saudi property ownership applications. The process varies depending on your status.
For Residents Inside Saudi Arabia
- Visit the Saudi Properties portal
- Log in using Nafath (the national single sign-on system) with your residency ID (Iqama)
- Eligibility requirements are verified automatically through system integration
- Select the property you wish to acquire
- Complete the service form and attach required documents
- Pay applicable fees
- Submit your request and await approval
For Non-Residents Outside Saudi Arabia
- Contact a Saudi embassy or consulate in your country to obtain a digital identity
- Once your digital ID is issued, access the Saudi Properties portal
- Complete the ownership application online
- Provide required documentation
- Pay fees and submit your request
For Foreign Companies and Entities
- Register with the Ministry of Investment through the Invest Saudi platform
- Obtain the Unified Number (700)
- Access the Saudi Properties portal using your corporate credentials
- Complete the ownership procedures electronically
- All property rights must be registered in the national Real Estate Registry
Key Requirements
Mandatory Registration
All real estate purchases or rights acquisitions by non-Saudis must be registered with the competent authority and recorded in the national Real Estate Registry to be legally effective. Unregistered acquisitions have no legal validity.
Saudi Bank Account
Yes, it is required to open an approved bank account inside the Kingdom. The list of approved banks can be found on the Saudi Real Estate Portal.
Saudi Contact Number
A Saudi contact number is mandatory for both residents and non-residents. This enables access to official platforms like Nafath and Absher, which are essential for completing ownership procedures.
Licensed Real Estate Broker
To complete a property purchase, you must work with a licensed real estate broker within the Kingdom in accordance with approved regulations. A list of approved licensed brokers is available on the Real Estate General Authority website.
Fees and Costs
Property buyers should factor in several costs when planning their investment:
Real Estate Transfer Fee
The Real Estate General Authority may levy a transfer fee on disposals of property by non-Saudis, capped at 5% of the property’s value. The exact fee structures will be detailed in the implementing regulations.
Real Estate Transaction Tax (RETT)
Saudi Arabia imposes a 5% Real Estate Transaction Tax on most property sales, which is typically paid by the seller but may be transferred to the buyer by contract agreement. Payment is made through the Zakat, Tax and Customs Authority (ZATCA) platform.
Brokerage Commission
Real estate brokerage fees vary depending on the service. The regulatory maximum commission is 2.5% of the property value. Only brokers licensed with REGA can legally charge these commissions.
Value Added Tax (VAT)
VAT at 15% applies to most new property sales and real estate services, but generally not to resale of used residential properties.
Penalties for Violations
The law establishes a strict compliance regime with significant penalties:
- General violations: A fine of up to 5% of the property value, with a maximum of SAR 10 million
- Providing misleading information: The penalty may reach a fine of SAR 10 million AND the sale of the property by public auction
- Appeals: Decisions by the enforcement committee can be appealed to administrative courts within 60 days
A specialized committee under REGA oversees compliance and investigates breaches.
Your Rights as a Property Owner
The new law provides several important protections for non-Saudi property owners:
Ownership Continuity
Property ownership is not affected if the owner permanently leaves the Kingdom. Whether you remain a resident or become a non-resident, your ownership rights continue.
Protection from Zone Changes
No modification to geographic zones shall prejudice ownership rights that have been legally established for a non-Saudi.
Inheritance Rights
The transfer of in-rem rights to heirs is subject to the Personal Status Law and other relevant regulations.
Mortgage Rights
Mortgaging property owned by a non-Saudi is permitted in accordance with relevant regulations and controls.
Investment Rights
Non-Saudi owners (individuals or companies), whether inside or outside the Kingdom, are entitled to invest in their property in accordance with Ministry of Investment regulations.
Power of Attorney
Non-Saudi property owners from outside the Kingdom have the right to issue a legal power of attorney through approved entities, enabling an agent to manage or invest in their property inside the Kingdom.
Important Limitations to Understand
- No visa exemption: Real estate ownership does not grant exemption from visa requirements. Visas remain subject to the regulations of competent authorities.
- Visa refusal still possible: Visa refusal is subject to the criteria of competent authorities and is not linked to property ownership.
- Transfer restrictions: Property cannot be transferred as a gift to a person who does not meet the statutory ownership requirements.
- Purpose changes regulated: Changing the purpose of use of the property after ownership is subject to relevant regulations.
- Council of Ministers controls: Maximum ownership shares and time limits on usufruct or lease terms may be imposed in specific zones.
Compatibility with Other Laws
The Non-Saudi Real Estate Ownership Law is consistent with the provisions of the Premium Residency Law and the regulation of real estate ownership by GCC citizens in member states for residential and investment purposes. If there are special benefits under any of these systems, the most beneficial option for the applicant is applied according to each system.
Services Coming Soon on Saudi Properties Portal
The Saudi Properties portal will offer several inquiry services to help buyers verify eligibility and property status:
Inquiry About Fulfilling Ownership Requirements (For Buyers)
This service allows beneficiaries to verify their eligibility to own real estate according to approved regulations before starting any legal procedures. Requirements include beneficiary ID, date of birth, and property details if applicable.
Property Eligibility Inquiry Service (For Sellers)
This allows property owners to verify if their property is eligible for sale to non-Saudis before starting real estate procedures. Requirements vary based on whether the property is an off-plan project, registered in the Real Estate Registry, or held via deed.
Transfer of Real Estate Ownership
This service facilitates the transfer of real estate ownership and registration in the real estate registry. Requirements include valid National ID or Residency, valid Commercial Registration for entities, property registration, approval of all stakeholders, and payment of Real Estate Transaction Tax where applicable.
Why Invest in Saudi Real Estate Now
Saudi Arabia presents compelling reasons for real estate investment:
Economic Stability
The Saudi Riyal has been stable against the dollar for decades, inflation remains low, and the Kingdom’s credit rating confirms economic strength. Saudi Arabia ranks among the top 20 economies globally as a G20 member.
Growing Demand
The real estate demand index rose by 4.3% in 2025, driven by increased demand for residential land and new projects. With a population of over 35 million, including citizens and residents, demand continues to grow.
Competitive Rental Yields
Saudi Arabia offers among the highest rental income yields in the region, increasing net profit potential for investors.
Digital Infrastructure
The Kingdom ranks among the top 10 countries for internet speed, with 98% internet coverage on roads, and 69% of the population using e-commerce. This digital advancement extends to real estate transactions through integrated portals.
Quality of Life
With 210 billion SAR spending on education, 840 billion SAR expected healthcare spending over five years, and massive investment in entertainment (584 venues and 240 billion riyals allocated for the next decade), the quality of urban life continues to improve.
Development Pipeline
With 50% of new units built using modern technologies, approximately 1.2 billion square meters of built areas expected by 2031, and 1.5 million new residential units under construction by 2030, the development trajectory is strong.
Official Resources and Contact Information
Key Portals
- Saudi Properties Portal: saudiproperties.rega.gov.sa
- Real Estate Registry: rer.sa
- Real Estate General Authority: rega.gov.sa
- Invest Saudi: investsaudi.sa (for company registration)
- ZATCA (for tax information): zatca.gov.sa
Contact Information
- Unified Number (inside Kingdom): 199011
- International Number: +966 9200 17183
Final Thoughts
The implementation of the Law of Real Estate Ownership by Non-Saudis marks a transformative moment in Saudi Arabia’s real estate landscape. For the first time, foreign individuals and entities have a clear, structured pathway to property ownership in the Kingdom.
While the law came into effect on January 22, 2026, some practical elements are still being finalized. The Geographic Zones Document expected in Q1 2026 will provide crucial clarity on exactly where foreign ownership is permitted. Until then, prospective buyers should:
- Monitor official announcements from REGA
- Prepare required documentation
- Ensure they have a Saudi bank account and contact number
- Work only with licensed real estate brokers
- Consult with legal and financial professionals for specific situations
As the Kingdom continues its ambitious Vision 2030 transformation, property ownership represents not just a financial investment, but a stake in Saudi Arabia’s dynamic future.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Regulations and procedures may change. Please verify all information on official government portals before making any property decisions.