Usufruct in Saudi Arabia: A Comprehensive Guide

Usufruct is a legal tool that allows a person to use and benefit from a property owned by someone else, without transferring the ownership deed. In Saudi Arabia, there are two integrated regulations for this right: a general regulation governed by the Civil Transactions Law that applies to everyone, and a specific application within the Ownership of Real Estate by Non-Saudis system, which specifically allows it in Mecca and Medina for those who do not meet the full freehold ownership requirement. This article covers both frameworks.

Usufruct Right in Saudi Arabia and Its Legal Nature

The Saudi Civil Transactions Law, in Article 679, defines usufruct as a real right that allows the beneficiary to use and exploit something owned by another as long as it remains in its original state. Its essential characteristics include:

• An original real right, derived from ownership, granting its holder direct authority over the property without the need for the owner's mediation, unlike lease, which remains a personal right.
• Does not deprive the owner of their ownership: the property owner retains full ownership, while the beneficiary enjoys use and exploitation of the property according to the nature and limits of the right.
• Can be for a financial consideration or free of charge, depending on the parties' agreement.
• It differs from easement, which restricts the benefit of a property for the benefit of a neighboring property owned by another person, as usufruct is a direct right over the property itself for a specific person.

How Is Usufruct Acquired and When Does It End?

Usufruct is acquired through a legal transaction between the parties (such as a usufruct contract), inheritance, or pre-emption. Its duration is often long and may extend throughout the beneficiary's life if no specific term is set. Usufruct ends in the following cases:

• Expiration of the specified term, if its duration is set in the contract.
• Death of the beneficiary, if the right is not limited to a specific term.
• Destruction of the property under usufruct.
• If the beneficiary is a legal entity (company or institution), the maximum duration of usufruct is 30 years.

Read also: Conditions for Property Ownership by Non-Saudis: Residents and Non-Residents

Rights and Obligations of the Beneficiary

• Use: Using the property in accordance with its nature without making changes to it, such as residing in a residential property or conducting a commercial activity that matches the property's nature.
• Exploitation: Gaining benefits or returns from the property, such as receiving income from an existing facility, harvesting crops from agricultural land, or subletting the property to others.
• Transfer of right: The beneficiary may assign the usufruct right or lease the property to others, unless otherwise agreed.
• Obligation to maintain the property: Performing routine maintenance, managing it properly, and abiding by the agreed scope of usufruct.

Rights and Obligations of the Property Owner

• Retaining full ownership of the property without being deprived of it.
• Obligation to enable the beneficiary to use and exploit the property.
• Bearing major repairs (unlike routine maintenance, which is the beneficiary's responsibility).
• Objecting to any unlawful use or use contrary to the nature of the property or the limits of the granted right.

The Difference Between Usufruct and Lease

Read also: How to Obtain Real Estate Residency in Saudi Arabia through Property Ownership?

Registration of Usufruct in the Real Estate Register

The substantive provisions of usufruct (its scope, rights and obligations of the parties) are regulated by the Civil Transactions Law, while its registration in the real estate register is subject to the Real Estate Registration Law, based on Article 13, which requires the registration of all transactions creating original or subsidiary real rights; these rights are not effective or have judicial and administrative effects except after registration.

On April 26, 2026, the General Real Estate Authority released a draft model for registering usufruct in the real estate register and a draft model for the usufruct deed. The highlights of the draft include:

• Two options for financial consideration: Either specifying a total financial consideration covering the entire usufruct period, paid via electronic payment methods or certified check and documented through the real estate register platform, or usufruct without any financial consideration for the entire period without the beneficiary being obligated to pay any amount to the owner.
• Official usufruct deed documenting the right's data, duration, and parties.
• Detailed regulation of the rights and obligations of both the beneficiary and the owner within the registration model.

Usufruct Right for Non-Saudis in Mecca and Medina

For foreign investors, full freehold ownership inside Mecca and Medina is limited to natural Muslim persons within approved geographic zones. For those who do not meet this requirement, whether because they are not Muslim or the property is outside the approved zone for full freehold, usufruct remains a legal alternative with a clearly defined time limit: a period not exceeding 99 years, as stated in two complementary sources:

• Premium Residency Law: Grants premium residency holders wishing to benefit from property in Mecca or Medina a usufruct right for up to 99 years, through a usufruct contract concluded by a licensed practicing lawyer in the Kingdom, and documented at the competent notary after verifying the property's deed and completing its legal and regulatory procedures. This right may be transferred to others according to regulations set by the Supervisory Committee of the Premium Residency Center.
• Geographic Zones Document for the Non-Saudi Ownership System: Specifies for each zone in Mecca and Medina the maximum permissible usufruct duration, which is also 99 years, as well as the permissible ownership percentage and types of real rights that can be acquired.

Practically, this means that an investor who is not eligible for full freehold in Mecca or Medina does not have to withdraw from this market, but has the option of a long-term usufruct right that in practice almost equals the duration of full freehold, with the ownership deed remaining in the name of the original owner.

Our team at Imtilak Global helps you determine the best path for your situation: full freehold if you meet the requirements, or a long-term usufruct as a guaranteed legal alternative. Contact us for a free real estate consultation, or check out Property Ownership for Non-Saudis in Mecca and Saudi Real Estate Residency Guide.

Frequently Asked Questions about Usufruct in Saudi Arabia

What is the essential difference between usufruct and ownership?
Ownership includes both the title and the usufruct, i.e., full disposal of the property and its benefits. Usufruct is limited to use and exploitation without disposing of the title, which remains in the name of the original owner.

Can usufruct be sold or assigned?
Yes, the beneficiary may transfer or assign the usufruct right or sublet the property to others, unless otherwise agreed in the contract establishing the right.

What is the maximum duration for usufruct in Mecca and Medina for non-Saudis?
99 years maximum, whether through the premium residency route or the geographic zones document for the non-Saudi property ownership system.

Is usufruct officially registered like a title deed?
Yes, it is subject to the Real Estate Registration Law and is not effective against third parties until it is registered in the real estate register. The General Real Estate Authority released draft registration and deed models in 2026, and we recommend checking the final approved version.

Is the beneficiary required to pay financial consideration to the owner?
Not necessarily; it depends on the agreement between the parties. The system allows two options: a lump sum paid once for the entire usufruct period, or usufruct without any financial consideration for the entire period.