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Q: Can Foreign Companies Own Real Estate in Saudi Arabia?

Yes. The law permits foreign companies, special purpose entities, and qualified investment funds to own real estate in accordance with the applicable regulatory requirements and conditions established for each category.

Q: Can Non-Saudis Own Property in Makkah and Madinah?

Property ownership in Makkah and Madinah is subject to specific conditions and regulations that reflect the religious significance of both cities. Ownership is governed by the law, implementing regulations, and relevant official decisions.

Q: Can Non-Residents Own Property in Saudi Arabia?

Yes. The law allows certain categories of non-Saudis to own real estate, whether they are residents or non-residents, subject to the applicable requirements, property type, and geographic location.

Q: Will the Law Contribute to Creating Job Opportunities for Saudi Citizens?

Yes. The law is expected to stimulate real estate and investment activity across the Kingdom, increasing demand for property development, brokerage, valuation, property management, legal and engineering consultancy services. New real estate projects are also expected to generate direct and indirect employment opportunities across the real estate, construction, and related service sectors.

Q: What Are the Expected Benefits of the Law for the Real Estate Sector?

Key expected benefits include: Attracting additional foreign investment into the Saudi real estate market. Increasing property supply in areas open to foreign ownership. Enhancing the quality and competitiveness of real estate developments. Supporting urban development and encouraging new projects. Contributing to the objectives of Saudi Vision 2030.

Q: What Types of Properties Can Non-Saudis Own?

The law allows ownership of residential, commercial, investment, and other types of real estate, subject to the conditions and requirements specified in the law, implementing regulations, and approved geographic zones.

Q: Will the Law Affect Saudi Citizens’ Ability to Own Homes?

The law was designed to balance investment attraction with the protection of citizens’ interests. Foreign ownership is limited to approved geographic zones and is subject to specific regulatory controls and oversight mechanisms intended to maintain market stability and support a balanced relationship between supply and demand.

Q: Is This the First Law Allowing Foreigners to Own Real Estate in Saudi Arabia?

No. The original Foreign Ownership and Investment in Real Estate Law was issued in 1421 AH (2000). The current framework, approved under Royal Decree No. (M/14) on 19 Muharram 1447 AH (14 July 2025), is an updated version that introduces a more comprehensive and modern regulatory structure for foreign property ownership in Saudi Arabia.

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How Can I Verify Whether a Property Is Located in an Area Open to Foreign Ownership?

Permitted ownership zones are determined through official regulations and decisions issued by the competent authorities. Buyers can verify the eligibility of a property and its location through the relevant official channels before completing a transaction.

Can Foreign Companies Own Real Estate in Saudi Arabia?

Can Non-Saudis Own Property in Makkah and Madinah?

Can Non-Residents Own Property in Saudi Arabia?

Will the Law Contribute to Creating Job Opportunities for Saudi Citizens?

What Are the Expected Benefits of the Law for the Real Estate Sector?