Saudi Arabia’s updated Non-Saudi Real Estate Ownership Law entered into force on January 22, 2026, establishing a new regulatory framework governing property ownership by non-Saudi individuals, companies and entities.
The system is designed to improve the efficiency and attractiveness of the Kingdom’s real estate market while establishing clear controls covering geographical areas, ownership limits, property rights and permitted uses.
Under the new framework, non-Saudi individuals, whether residents or non-residents, as well as non-Saudi companies and entities, may own real estate or acquire real rights over property subject to specific regulations. The framework also covers Saudi companies with non-Saudi shareholders and certain investment entities under applicable regulations.
Geographical Zones and Ownership Limits
The new framework does not represent unrestricted foreign ownership across the Kingdom. Instead, ownership is governed by designated geographical zones that specify where non-Saudis may acquire property, along with maximum ownership percentages, types of real rights, permitted durations and other regulatory requirements.
The framework covers major cities including Riyadh and Jeddah, as well as Makkah and Madinah, in addition to other areas identified through the approved geographical scope document. The official system provides detailed maps showing permitted locations, ownership limits and applicable controls.
Special Rules for Makkah and Madinah
The law establishes specific conditions for property ownership in Makkah and Madinah. For individuals, the right to own property or acquire real rights in the two holy cities is limited to Muslim non-Saudi individuals, subject to the applicable regulations.
The framework also allows certain Saudi companies established under the Saudi Companies Law and jointly owned by Saudi and non-Saudi shareholders to own property and acquire real rights within designated areas, including Makkah and Madinah, subject to regulatory requirements.
Digital Platform for Property Ownership
Applications for non-Saudi property ownership are processed through the official Saudi Properties digital platform, which is integrated with the Real Estate Registration System and allows applicants to complete procedures and verify regulatory compliance.
Non-Saudi individuals residing outside the Kingdom must obtain a digital identity before purchasing property, while companies without an existing presence in the Kingdom must complete registration requirements with the Ministry of Investment before proceeding with ownership procedures.
Fees and Financial Controls
The executive regulations establish fees for transactions involving real rights in property by non-Saudis based on the geographical area, type of right and permitted use. In certain designated areas, the applicable fee is set at 2%, while other transactions may qualify for a zero-rate fee under specific conditions outlined in the regulations.
Supporting Real Estate Investment
The new framework aims to attract international developers and leading companies, stimulate growth across residential, commercial, industrial and tourism real estate, and strengthen the sector’s contribution to the Kingdom’s non-oil economy.
It also seeks to create employment opportunities linked to real estate development and urban growth, while improving market transparency and protecting property rights.
The updated system represents a significant step in the development of Saudi Arabia’s real estate market, providing a structured framework for non-Saudi ownership while balancing investment opportunities with geographical, regulatory and ownership controls in line with the objectives of Saudi Vision 2030.
