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Foreign Ownership of Real Estate in Saudi Arabia

Understand real estate ownership and investment opportunities in Saudi Arabia through clear guidance and reliable information.

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Updated system

What Is the Updated Foreign Real Estate Ownership Law?

A regulatory framework governing foreign ownership of real estate in the Kingdom of Saudi Arabia.

What Is the Law?

The Foreign Ownership of Real Estate Law is a regulatory framework that governs real estate ownership in the Kingdom of Saudi Arabia by non-Saudi individuals, companies, and entities. It establishes specific rules and criteria to ensure that foreign ownership aligns with the Kingdom’s national interests, economic objectives, and regulatory policies while respecting its religious, cultural, and social values.

When Was It Issued?

The first law governing foreign ownership and investment in real estate was issued on 1 Muharram 1421 AH (6 April 2000). Subsequently, Royal Decree No. (M/14), issued on 19 Muharram 1447 AH (14 July 2025), approved the updated Foreign Real Estate Ownership Law, which is now the applicable regulatory framework.

What Does It Regulate?

The updated law consists of 15 articles and regulates the following:

Foreign ownership of real estate in Saudi Arabia.
Categories of individuals and entities eligible to own property.
Approved geographic zones where ownership is permitted.
The issuance of implementing regulations that clarify and interpret the provisions of the law (officially issued in June 2026).

Why Was the Law Updated?

The law was updated through a comprehensive legislative approach that included:

Alignment with real estate regulations and governance frameworks.
Benchmarking against international best practices, including G20 countries.
Supporting a secure and transparent investment environment.
Advancing the objectives of Saudi Vision 2030.

System objectives

Attracting foreign direct investment to the Saudi real estate market.
Enhancing the real estate sector's contribution to GDP.
Retaining global talent by enabling them to settle in the country.
Increasing the contribution of non-oil sectors to the national economy.
Sustainably developing the economy and diversifying income sources.
Improving the quality of urban and residential life.

Categories and regions

Who Can Own Real Estate in Saudi Arabia and Where?

Explore the categories eligible for property ownership and the approved areas available under the updated regulations.

Eligible Categories for Property Ownership
Areas Available for Foreign Ownership

Non-Saudi individuals

Residents and non-residents, according to the regulations of the system.

Foreign Companies

Companies established inside or outside Saudi Arabia, subject to applicable requirements.

Special Purpose Entities (SPEs)

Entities with foreign participation in their ownership structure.

Foreign Investment Funds

Eligible foreign investment funds in accordance with approved regulations.

Foreign Non-Profit Organizations

Organizations permitted under the provisions of the updated law.

Diplomatic Missions and International Organizations

Based on reciprocity principles and official government approval.

Mecca – Ownership under specific conditions

Non-Saudi Muslims and eligible Saudi companies may own real estate within approved zones in Makkah, officially announced in June 2026.

Madinah - Ownership Subject to Specific Conditions

Non-Saudi Muslims may own real estate within approved zones in Madinah, subject to regulations similar to those applicable in Makkah.

Riyadh

Foreign nationals may own real estate within officially approved zones in Riyadh. Details of these zones are being published progressively through Saudi Arabia’s official real estate platforms.

Jeddah

Foreign ownership is permitted within officially approved zones in Jeddah, subject to carefully designed regulations that support market stability and protect investor interests.

Learn about the approved areas for property ownership in the Kingdom according to the new regulations.

Discover the categories of people who are entitled to own property in Saudi Arabia according to the updated system.

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Frequently Asked Questions

Frequently Asked Questions about Non-Saudi Property Ownership in Saudi Arabia

About foreign real estate ownership in Saudi Arabia., clear and concise explanations will help you understand the applicable regulations, eligible ownership categories, and approved geographic zones, enabling you to make informed property investment and ownership decisions.

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?

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.

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.

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.

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.

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.

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.

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.

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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