Saudi Arabia has introduced detailed executive regulations governing real estate ownership by non-Saudis, setting out new requirements aimed at strengthening transparency, governance, and financial oversight while supporting foreign investment in the Kingdom’s property market.
The new regulations require the Real Estate General Authority (REGA) to establish a unified electronic portal linked directly to the national real estate registry. The platform will enable foreign individuals, foreign companies, and eligible Saudi companies with foreign shareholders to submit ownership applications, complete real estate transactions, and obtain title deeds electronically.
Under the regulations, all financial transactions related to property ownership must be completed through electronic payment methods approved under the Saudi Central Bank (SAMA) payments framework, reinforcing digital oversight and reducing undocumented financial transactions.
Requirements for Foreign Individuals
Non-resident individuals seeking to purchase property in Saudi Arabia must first:
- Obtain a Saudi-issued digital identity.
- Open a local bank account.
- Obtain a Saudi mobile number registered in their name and linked to their digital identity.
New Rules for Foreign Companies
Foreign companies must register with the Ministry of Investment, disclose their direct and indirect owners during registration, appoint a legal representative holding a Saudi-issued identity, and open a local bank account in the company’s name before receiving an official registration number.
Registered foreign companies must notify the Ministry of Investment within 15 days if ownership of 5% or more is transferred, whether through one transaction or multiple transactions. They must also report any internal arrangements or regulations that restrict the company’s independence or allow another party to exercise significant influence over its decisions or actions.
Rules for Foreign Non-Profit Entities
Foreign non-profit organizations must register with the National Center for Non-Profit Sector Development before acquiring property or other real estate rights. They must disclose their direct and indirect controlling parties, appoint a legal representative with a Saudi identity, and open a local bank account.
These entities must also notify the center within 15 days of any material changes affecting the organization, individuals influencing its decisions, or arrangements that limit its independence.
The regulations also allow unlisted Saudi companies with foreign shareholders to own property or acquire real estate rights outside the geographical boundaries of Makkah and Madinah for business activities or employee housing, subject to the applicable regulatory requirements.
New Property Transaction Fee
The regulations introduce a 2% fee on the value of real estate rights transferred by non-Saudis in Riyadh, Makkah, Madinah, and Jeddah. The fee applies to all property uses, including residential and commercial transactions.
Exemptions apply to certain cases, including inheritance divisions, transfers made under final court judgments, and property transfers resulting from expropriation for public benefit.
Regulations Already Approved
The Saudi Cabinet approved the executive regulations and the geographical areas where non-Saudis may own property in June 2026. The Non-Saudi Real Estate Ownership Law entered into force on January 22, 2026, following its publication in the Official Gazette.
Source: Asharq Al-Awsat Newspaper