Property Ownership for Non-Saudis in Makkah

Learn about the conditions and possibilities of property ownership for non-Saudis in Makkah under the new Saudi legal framework, including available exceptions and foreign investment cases in accordance with the executive regulations.

The Kingdom of Saudi Arabia is witnessing a major legal and regulatory transformation in the field of foreign property ownership. A new unified system is expected to come into force at the beginning of 2026, aiming to simplify procedures for non-Saudi property ownership across most Saudi cities, while maintaining clear exceptions for areas of special religious and cultural sensitivity.

Makkah stands at the forefront of these exceptions, as property ownership regulations there remain more restrictive in order to preserve its unique religious status.

What Is the Property Ownership System for Non-Saudis in Saudi Arabia?

Saudi Vision 2030 is based on opening new economic sectors to foreign investment, including the real estate sector. The new system regulating property ownership for non-Saudis is part of this vision, aiming to attract foreign investment and strengthen the Saudi real estate market.

The Difference Between the General Law and Special Areas

The new general system allows non-Saudis—both individuals and companies—to own real estate in most regions of the Kingdom of Saudi Arabia, subject to specific conditions and procedures. However, the system explicitly excludes the cities of Makkah and Madinah, where ownership restrictions remain in place to protect the religious character of these two holy cities.

Why Is Makkah an Exception in Property Ownership Laws?

Makkah holds profound religious significance for Muslims worldwide, as it is home to the Holy Kaaba and the sacred pilgrimage sites. Therefore, the Kingdom is keen to preserve the Islamic identity of the city and prevent any influences that may alter its religious character.

These restrictions aim to ensure proper management of properties near the Grand Mosque and to protect the rights of Saudi citizens in this vital and sensitive area.

Read more: Foreign Property Ownership in Saudi Arabia: The Updated System

In Which Cases May Foreigners Be Allowed to Own Property in Makkah?

1. Ownership by Licensed Real Estate Companies

Foreign companies that obtain special licenses from the competent authorities—such as the Saudi Investment Authority and relevant religious bodies—may be permitted to invest in specific real estate projects in Makkah. These projects are often related to services for pilgrims and Umrah performers, and such licenses are typically subject to strict conditions and limited investment scopes.

2. Investment Through Shares and Capital Market Instruments

Foreign investors may participate in Saudi-listed companies that own properties in Makkah by purchasing shares in those companies. Investment is also possible through debt instruments and sukuk issued by entities holding real estate assets in the area.

3. Property Investment Through Investment Funds

Executive regulations allow real estate investment funds licensed by the Saudi Capital Market Authority to own properties in Makkah. Foreign investors may participate in these funds as unit holders, without directly owning the real estate assets themselves.

Read also: A Legal Procedures Guide for Non-Saudis to Own Property in Saudi Arabia

Conditions and Procedures for Property Investment Related to Makkah

• Property Registration and Legal Representation

All properties must be registered in the National Real Estate Registry (Aqar) under the Saudi Real Estate Registration Law. No ownership or in rem rights are legally recognized before registration. In addition, real estate investment related to Makkah requires appointing a licensed Saudi legal representative to liaise with government authorities.

• Government Approvals

Foreign companies and investment funds must obtain prior approvals from several government entities before undertaking any real estate investment linked to Makkah, most notably:

• Ministry of Municipal, Rural Affairs and Housing
• Saudi Investment Authority
• Relevant religious authorities (for projects near the Grand Mosque)
• General Real Estate Authority

Taxes and Fees

Property ownership transfers involving non-Saudis are subject to fees of up to 5% of the property value in permitted areas. Similar tax procedures apply to Makkah-related projects undertaken by funds and companies.

Profits generated from real estate investments are also subject to income tax, typically ranging between 20% and 30%, depending on the nature of the investment entity.

For Everything Related to Property Ownership in Makkah, Consult Imtilak Global

For all matters related to property ownership in Makkah, Imtilak Global is your trusted partner for specialized real estate consultation and support. We provide our clients with accurate and up-to-date information on property ownership regulations in Makkah, including conditions and requirements for citizens, residents, and investors, while fully respecting the sanctity of the holy city and its governing laws.

We also assist you in identifying suitable real estate opportunities aligned with your residential or investment objectives and provide full legal support throughout all stages of ownership to ensure a secure and transparent experience.

Contact Imtilak Global today and let our experts guide you toward the right real estate decision with confidence and peace of mind.