Foreign Ownership of Real Estate in Saudi Arabia: Who is Eligible, Where, and How?

Yes, non-Saudis are entitled to own real estate in the Kingdom of Saudi Arabia, but this right is restricted to specific geographic areas, clear eligibility conditions, and official registration procedures through the General Real Estate Authority. This right is no longer an individual exception as it was in the past; since the beginning of 2026, it has become a comprehensive legal system that governs who can own, where, under what capacity, and with what rights.

In this guide, we explain the full legal and practical framework regarding foreign ownership of real estate in Saudi Arabia, based on the official system and its executive regulations, so you can make your investment or residential decision with complete awareness of what you are entitled to, what you are not, and how to proceed with the procedures without making mistakes that could cost you time or money.

Are foreigners allowed to own real estate in Saudi Arabia?

Foreigners are allowed to own real estate in Saudi Arabia but under certain conditions. The Non-Saudi Property Ownership Law was issued with the approval of the Council of Ministers. It consists of 15 articles that precisely define who is eligible to own, where, and under what legal capacity. The law came into effect at the beginning of 2026, and the General Real Estate Authority officially started accepting ownership applications as of June 2026.

This means that foreign ownership of real estate in Saudi Arabia has become a clear legal path, available to residents, individual investors, and companies alike, within predetermined regulations. This system does not grant an absolute right but balances between encouraging foreign investment and protecting the urban and security fabric of the Kingdom. Therefore, understanding the geographic areas and eligible categories (explained later in this guide) is key to any successful ownership decision.

The legal framework for the non-Saudi property ownership system

Non-Saudi Property Ownership Law is the legal basis for every right of ownership for non-Saudis within the Kingdom. The law includes key elements such as legal definitions, determining the geographic scope permitted for non-Saudis, special provisions for listed companies on the Saudi financial market, linkage with the Premium Residency system, rights and privileges of non-Saudi owners, provisions for official premises of diplomatic missions, obligations for non-Saudi companies to register with the relevant authority, fees and taxes related to real estate transactions, and penalties for violations.

Practically, after the law, its executive regulations were issued, detailing implementation mechanisms. The geographic scope document was also issued, which accurately defines, through interactive maps, the areas where ownership is permitted, the allowed ownership percentages in each area, the types of real rights that can be acquired, and the permitted durations for each area.

The authority responsible for organizing this entire file, from issuing regulations to receiving applications and monitoring compliance, is the General Real Estate Authority (REGA), which has provided a geospatial electronic portal and a digital inquiry service to check the status of any real estate area before proceeding with any transaction.

Who is eligible to own property in Saudi Arabia?

The law defines four main categories eligible to own property or acquire real rights in Saudi Arabia:

Legal residents: Any foreigner holding a valid residence permit in the Kingdom is entitled to own only one property for residential use, outside the specified geographic scope, except for the cities of Mecca and Medina.

Foreign investors (individuals or companies): Those wishing to enter the Saudi real estate market for investment purposes, whether they reside inside or outside the Kingdom, are subject to specific qualification and registration conditions through the Authority's digital platforms.

Mixed companies: These are companies not listed on the Saudi financial market in which non-Saudis have ownership. They are granted the right to own within the specified geographic scope, including Mecca and Medina if established under the Saudi Companies Law. They may also own outside this scope for business activity or employee housing purposes.

Organizations and diplomatic missions: The law allows ownership of official premises for accredited diplomatic missions, as well as international and regional organizations, provided the principle of reciprocity is met.

Each of these categories has a different registration path and different verification priorities, which we help our clients determine precisely before starting any actual procedure.

Read also: Apartments for sale in Saudi Arabia for foreigners

Permitted geographic areas for property ownership in Saudi Arabia

The geographic scope is the primary determinant for any ownership decision. The law does not grant the right to own in every part of the Kingdom but restricts it within the "Geographic Scope Document" officially issued by the General Real Estate Authority. According to this document, the permitted ownership areas include regions in Riyadh, Jeddah, Mecca, and Medina, in addition to other cities and governorates across the Kingdom, with detailed maps showing the allowed ownership percentage in each area, the type of real right that can be acquired (full ownership, usufruct, usage right), and the duration for which the right is permitted.

It is important to note that the presence of a city within the document does not mean ownership is allowed throughout its entire area; the document operates on the principle of "detailed maps at the neighborhood and plot level," not at the city level as a whole. Therefore, verifying the status of a specific real estate plot—through the real estate area inquiry service of the Authority—is a mandatory step before any purchase commitment, and we perform this step for our clients as part of the real estate tours and consultation we provide.

Areas and cases excluded from ownership

The law explicitly prohibits non-Saudis from acquiring any real right within the boundaries of Mecca and Medina, whether this right is full ownership, easement, usufruct, or in any other way, with only one exception: legal inheritance.

In addition to these two cities, the law specifies other areas where ownership is prohibited for security and strategic reasons, including the Kingdom's border areas, locations near military bases or vital security installations, and areas designated by the state for national security requirements.

The executive regulations also specify certain exceptional cases where transactions are permitted despite the general restrictions. The most notable include: transactions from a natural person to a company or investment fund established within the Kingdom in which this person owns all shares directly or indirectly, and transactions resulting from the sale of real estate units if the non-Saudi has acquired and developed land, provided the sale is completed within one year from the date of completion of the development license.

Read also: Property ownership for non-Saudis in Medina

Types of real rights that can be acquired

The law does not limit itself to full ownership (absolute ownership) only but opens the door to other types of real rights depending on the geographic area, the nature of the property, and its purpose, most notably:

• Full ownership: Transferring the entire ownership of the property to a non-Saudi within the permitted areas.
• Usufruct: Allowing the non-Saudi to use and benefit from the property for a specified period without transferring full ownership.
• Easement: Rights related to specific uses of the property as defined by the regulations.

Steps for foreigners to own property in Saudi Arabia

The ownership process follows a specific path:

1. Eligibility verification: Ensure that one of the eligible categories applies (valid residency, investor status, company registration) before starting any step.
2. Geographic scope verification: Use the General Real Estate Authority's real estate area inquiry service to confirm that the targeted plot or project is within a permitted area.
3. Logistical requirements preparation: Open a local bank account and obtain a Saudi SIM card if necessary to facilitate transactions through government platforms, especially for non-resident investors.
4. Determine the type of right required: Decide whether the goal is full ownership or usufruct, based on the property's purpose (residential, investment, development).
5. Register via the digital platform: Submit the ownership application electronically through the General Real Estate Authority's platforms, providing the required data and documents.
6. Official registration in the real estate registry: Complete the official documentation procedures to ensure full legal protection of the acquired right.

At Imtilak Global Saudi Arabia, we accompany our clients at every step of this process, from eligibility and scope verification to completion of documentation, to avoid any procedural delays or rejections.

Read also: Buying apartments in Saudi Arabia for foreigners

Required documents and conditions

The required documents vary by category (individual resident, non-resident investor, company), but generally revolve around proof of identity or valid legal residency, proof of source of funds or financial solvency for investors, commercial registration data and disclosure documents for direct and indirect owners for foreign companies wishing to own, and appointing a legal representative within the Kingdom, in addition to opening a local bank account and obtaining an official registration number before starting ownership procedures.

Since detailed lists of documents may be updated periodically through the digital platforms of the General Real Estate Authority, at Imtilak Global we verify the latest requirements for each specific case at the beginning of every ownership file for our clients, instead of relying on a general list whose details may change.

Fees and costs associated with ownership

The law imposes a fee not exceeding 5% of the value of the real estate transaction for non-Saudis, with its exact details to be specified in the executive regulations. In addition to this fee, other usual costs in any real estate transaction should be considered, such as registration fees in the real estate registry, and legal or real estate consultancy fees if any.

It is also important to recognize the regulatory aspect related to costs. The law imposes strict penalties for violations. Anyone who provides false or misleading information that leads to acquiring ownership or a real right is fined up to 5% of the value of the right in question, with a maximum of 10 million SAR, in addition to the possibility of a court order to sell the real right to the property. This highlights the importance of accuracy in the data provided during registration.

Difference between ownership by residents and non-resident foreign investors

There is a fundamental difference between the two categories that must be understood before planning any purchase:

- Legal resident: Entitled to own only one property for personal residential use, outside the specified scope, with the exception of Mecca and Medina. This right is linked to valid residency status.

- Foreign investor (whether resident or non-resident): Follows a different path that allows, depending on the area and type of activity, ownership of more than one property or unit for investment or development purposes, within the regulations defined by the Geographic Scope Document and the law's executive regulations. This path is often linked to more detailed registration and source of funds requirements compared to the individual residential ownership path.

Relationship between real estate ownership and residency in Saudi Arabia

Property ownership in Saudi Arabia is linked to the Premium Residency system, as the law includes special provisions that connect acquiring certain real rights with the active Premium Residency systems in the Kingdom. This linkage makes real estate ownership, in specific cases, one of the paths that foreign investors wishing for long-term settlement or easier movement and residency within the Kingdom can benefit from, according to the conditions set by the Premium Residency system itself, not the property ownership law alone.

Read also: Does buying property in Saudi Arabia grant residency?

Restrictions on sale and resale

The law and its executive regulations set controls to limit the use of property ownership for quick speculation purposes. The most notable of these controls relate to properties developed on land owned by non-Saudis. The law requires that development be completed within the period specified in the development license, and that the resulting units be sold within one year from the expiration date of this license; otherwise, the transaction may be subject to additional controls.

Maintaining the accuracy of the data provided during registration is also a fundamental and ongoing requirement throughout the ownership period, not just at the moment of purchase. The law grants the competent authorities the right to resort to the courts to request the sale of the real right to the property in the event of a significant violation. This makes complete transparency at every stage of the ownership process essential to protect the client's investment.

After understanding the system for foreign ownership of real estate in Saudi Arabia, it is essential to ensure that every detail—from the geographic scope to the type of real right and the accuracy of documents—matches your personal or investment situation exactly before signing any commitment. This is what our team at Imtilak Global does through our free real estate consultation: We review your eligibility, verify the status of the plot or project through official channels, clarify the type of real right actually available, and accompany you until the documentation is completed in the real estate registry.

Whether you are a resident looking for a home, or an investor comparing between Dar Global, Reportage, Thakher, and the top projects in Riyadh, Jeddah, and Mecca, our advisory team is ready to review your specific case and clarify the best path for you, with a free real estate tour on-site or online, with no obligation on your part.

Frequently asked questions about foreign ownership of property in Saudi Arabia

Can any foreigner buy property in Saudi Arabia without conditions?
No, the law requires that one of the eligible categories applies (legal resident, registered investor, mixed company, diplomatic entity) and ownership must be within the permitted geographic scope only.

Can foreigners own property in Mecca or Medina?
No, with the only exception being legal inheritance. All forms of ownership or acquisition of other real rights are explicitly prohibited within the two cities.

How many properties can a foreign resident own?
Only one property for personal residential use, outside the specified scope and except for Mecca and Medina. The investment path is subject to different regulations that may allow more than one property depending on activity and area.

What is the fee rate imposed on foreign ownership of property?
A fee not exceeding 5% of the value of the real estate transaction, with the exact details specified in the executive regulations.

Does property ownership automatically grant residency in Saudi Arabia?
Property ownership is linked to the Premium Residency system in specific cases according to the residency law itself, and is not an automatic right accompanying every ownership transaction.

How can I verify that the property I want to buy is within a permitted area?
Through the real estate area inquiry service of the General Real Estate Authority, or by consulting a licensed real estate advisor who can verify this data on your behalf before any purchase commitment.