Saudi Arabia Allows Foreigners to Own Property Under New Law

Saudi Arabia has introduced a new law that permits foreign ownership of property in the Kingdom. The law, which was approved by the Cabinet earlier this month, was officially published in the Umm Al-Qura gazette and will take effect in 180 days.

Who Can Own Property?

Foreign individuals, companies, and non-profit organizations will now be allowed to own real estate or acquire usufruct and leasehold rights in designated areas. “The locations where foreigners can buy property will be decided by the Council of Ministers.”

Makkah and Madinah Remain Restricted

Ownership in the holy cities of Makkah and Madinah is still limited. “Only individual Muslim foreigners may own property there under certain conditions.”

Residential Property for Expats

Foreign residents legally living in Saudi Arabia can buy one residential property for personal use. However, they are not allowed to purchase in restricted zones such as Makkah and Madinah.

Corporate and Institutional Ownership

Foreign-owned companies and investment funds will be able to own property across the Kingdom, including in the holy cities, if used for operational or staff housing purposes. Additionally, diplomatic missions and international bodies can acquire premises for official use, with the Foreign Ministry’s approval.

Property Registration and Penalties

All foreign property ownership must be registered with the national real estate registry. A property transfer fee of up to 5% applies to transactions involving foreign buyers. “Violations of the new law may result in fines up to 10 million Saudi Riyals, and in serious cases, authorities may order the forced sale of the property.”

Old Law Repealed

This regulation replaces the foreign ownership law introduced in 2000. Detailed implementation guidelines are expected within the next six months.