Saudi Arabia has officially published the details of a new law regulating real estate ownership by non-Saudis, following Cabinet approval. Released in the official gazette Umm Al-Qura, the law will take effect 180 days from publication and represents a major shift in the Kingdom’s property ownership policy.
The law allows non-Saudis—including individuals, companies, and non-profits—to own property or hold real estate rights such as usufruct and leaseholds within zones designated by the Cabinet. These rights will be subject to controls based on property type, location, and use.
Existing legal property rights held by non-Saudis before the law’s enforcement remain protected. However, ownership remains restricted in certain areas, notably Makkah and Madinah, except for individual Muslim residents under specific conditions.
The Council of Ministers, upon proposals from the Real Estate General Authority and approval from the Council of Economic and Development Affairs, will define the zones open to foreign ownership and set limits on ownership percentages and usufruct durations.
Foreign residents may own one residential property for personal use outside restricted areas. Corporate ownership is permitted for non-listed foreign companies, investment funds, and licensed entities, including in Makkah and Madinah, if the property supports operations or employee housing. Listed companies may acquire property in line with market regulations.
Diplomatic missions and international organizations may own official premises, subject to Foreign Ministry approval and reciprocity. All ownership must be registered in the national real estate registry to be valid.
The law introduces a transfer fee of up to 5% and penalties for violations, including fines up to SAR 10 million and potential forced sale in severe cases. A dedicated committee under the Real Estate General Authority will handle violations, with appeals allowed within 60 days.
The law repeals Royal Decree No. M/15 (2000) and removes previous restrictions on GCC ownership in Makkah and Madinah. Executive regulations are expected within six months.
