Riyadh: The Kingdom of Saudi Arabia (KSA) has officially published the full text of its revised real estate ownership law, enabling non-Saudis to acquire property under regulated conditions. The move forms part of broader economic reforms aligned with Vision 2030.
The law, approved by the Cabinet on Tuesday, July 8, and released in the Umm Al-Qura gazette on Friday, July 25, will come into force after 180 days. It repeals Royal Decree No. M/15 of 2000, Arabic daily Okaz reported.
Under the new system, foreign individuals, companies, non-profit organisations, and international bodies are permitted to own or hold real estate rights in areas to be designated by the Council of Ministers.
These rights include:
- Full ownership
- Usufruct rights (use and benefit without ownership)
- Fixed-term leaseholds
- Other legal real estate interests defined by law
These rights are subject to regulatory conditions, based on:
- Geographic location
- Type of property (e.g., residential, commercial)
- Intended use of the property
Key restrictions and exemptions
According to the Okaz, the law maintains a prohibition on property ownership in Makkah and Madinah, with limited exemptions for individual Muslim residents. It also repeals prior limitations on Gulf Cooperation Council (GCC) nationals, applying a single regulatory standard to all non-Saudi investors.
Foreign residents legally residing in the Kingdom are allowed to purchase one residential property outside restricted zones for personal housing use.
Corporate ownership provisions
Non-listed companies with foreign stakeholders, licensed investment funds, and approved special-purpose entities may acquire property across the Kingdom — including in the two holy cities — provided ownership is tied to operational needs or employee housing.
Publicly listed companies and regulated investment vehicles may invest in real estate in accordance with Capital Market Authority guidelines.
Diplomatic missions and international organisations may also acquire property for official use and staff accommodation, subject to Foreign Ministry approval and reciprocity arrangements.
Compliance and penalties
All foreign buyers are required to register with the competent authority before acquiring property. Legal ownership and real estate rights become effective only after registration in the national real estate registry.
A real estate transfer fee of up to 5 percent will apply to transactions involving foreign entities.
The law establishes a strict penalties regime. Violations may lead to fines of up to SAR 10 million. In cases of serious non-compliance, such as submitting false information, authorities may enforce the sale of the property, with proceeds transferred to the state after deductions.
A dedicated enforcement committee under the Real Estate General Authority will investigate infractions and impose sanctions. Appeals may be filed with administrative courts within 60 days.
