Saudi Arabia to outline zones for non-Saudi property ownership

Riyadh: The General Authority for Real Estate (REGA) will soon release a comprehensive document identifying the specific areas where non-Saudis will be allowed to own property in the Kingdom, Arabic daily Okaz reported.

The document will include detailed maps of ownership zones across Riyadh, Jeddah, Makkah, Madinah and other cities, specifying permitted ownership percentages, property rights, and conditions for acquisition.

New law and implementation timeline

Under the updated Real Estate Ownership Law for Non-Saudis, endorsed in July 2025, ownership will be limited to registered properties. Foreign owners must disclose all required data.

The system will take effect in January 2026, 180 days after publication in the Official Gazette.

Key features of the law

The revised ownership framework introduces:

• 10 percent total charge, including real estate transaction tax and related fees
• Fines up to Saudi Riyals 10 million for violations
• Public auction for properties acquired through false information.

Eligible ownership categories

According to Okaz, five groups will be eligible to own property under the new system:

• Non-Saudi individuals
• Foreign companies
• Saudi companies with foreign shareholders
• Non-profit organisations
• Diplomatic missions.

Restrictions in Makkah and Madinah

Ownership and usufruct in Makkah and Madinah are limited to:

• Muslims
• Saudi-owned companies, within zones defined by the upcoming geographical document.

These rules operate alongside existing regulations such as:

• The Premium Residency System
• The GCC Property Ownership Regulation.

Governance and oversight

To ensure proper implementation, 13 Saudi government bodies will participate through an advisory committee responsible for:

• Supervising enforcement
• Monitoring compliance
• Submitting regular reports and recommendations.

Boosting investment and market balance

REGA said the reform is designed to attract foreign investment and strengthen the real estate sector’s contribution to Saudi Arabia’s non-oil economy under Vision 2030.

The sector currently supports more than 120 industries, creates jobs, and plays a central role in housing expansion and urban development.

Over the past five years, the Kingdom has enacted over 20 real estate laws to promote transparency, protect ownership rights and enhance investor confidence.

REGA emphasised that the new framework will not affect citizens’ access to housing but will ensure a balanced, competitive, and sustainable property market that supports long-term national growth.