Saudi Arabia allows foreign investors to own real estate

Riyadh: The Kingdom of Saudi Arabia’s Ministry of Investment has announced that foreign investors are now permitted to own and sell real estate for investment purposes.

According to a report by an Arabic daily Okaz, the ministry has specified several conditions for foreign investors wishing to engage in these activities. Key conditions include:

• Location restrictions: The property must be situated outside the holy cities of Makkah and Madinah.

• Investment purpose: The property must not be acquired for commercial speculation, which involves purchasing assets such as stocks, commodities, or real estate with the intention of profiting from price fluctuations. Speculators typically undertake high-risk investments to achieve quick gains.

Furthermore, the ministry has clarified that foreign investment firms must seek approval to own real estate for various purposes, including personal residences, industrial facilities, company headquarters, employee residential areas, and warehouses.

There is no financial fee for this service, and it is available via the ministry’s e-services portal, with approval granted within five business days.

Documents required

• A copy of the municipality’s building permit, an official letter of approval from the municipality, or a statement indicating the intended use of the land, issued by an authorised authority.
• A copy of the property deed for the land to be acquired.

Real estate development companies wishing to implement or sell a real estate project must submit a report from an engineering office accredited by the Saudi Council of Engineers, detailing the total project cost. The cost should be no less than 30 million Saudi Riyals for both land and construction, and the project must be located outside Makkah and Madinah. The development must be utilized within five years.

This initiative aims to boost investment and real estate development in regions beyond the two holy cities while ensuring compliance with the kingdom’s regulations.