As Saudi Arabia begins opening property investment to foreigners, the Kingdom’s regulatory authority has put in place strict guidelines to ensure transparency and safety in the market.
One of the main ways the Real Estate General Authority is ensuring this is through the ‘Saudi Property’ unified platform, where sellers and buyers are required to register before coming into an agreement.
The landmark decision came in July 2025, with the law being implemented in January 2026. The new system is part of ongoing reforms aimed at boosting the real estate sector and attracting foreign direct investment.
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Under the latest move, non-Saudis are permitted to buy property in Riyadh, Jeddah, Makkah, Madinah, and all cities and governorates of the Kingdom.
However, ownership in Makkah and Madinah is restricted to Muslim individuals only, as well as to Saudi companies with non-Saudi shareholders.
The ‘Saudi Property’ portal features designated geographical zones and high-potential investment opportunities, ensuring a transparent and dependable experience for buyers and sellers.
Who is allowed to own property?
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Non-Saudi natural person (whether residing in the Kingdom or not)
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Non-Saudi companies (whether operating within the Kingdom or not)
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Non-Saudi non-profit entities
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International missions and organisations (based on reciprocity and with the approval of the Ministry of Foreign Affairs)
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Saudi companies with non-Saudi shareholders
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Special-purpose vehicles, funds, or entities with non-Saudi equity holders
Amount of fee on real estate disposition
The law imposes a total real estate fee for non-Saudi real estate ownership of 10 per cent, which includes five per cent real estate disposition tax and an additional fee for real estate disposition for non-Saudis not exceeding five per cent.
Transaction fee
The law introduces a two per cent fee on transactions related to real estate rights acquired by non-Saudis in Riyadh, Jeddah, Makkah and Madinah. However, some categories are exempt from this. These are:
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Inheritance divisions
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Final court judgments
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Expropriation for public use
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Donations to endowments and government entities
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Returning property to its previous owner within 180 days under specified conditions
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Division of jointly owned property without increasing ownership shares
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Transactions involving diplomatic missions and international organisations under reciprocity arrangements
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Transfers of property to wholly owned companies or investment funds
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Sales of real estate units developed on foreign-owned land, subject to project completion and sale deadlines
Requirement for foreigners to own property
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The property subject to ownership must be in-kind registered in the Real Estate Registry.
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Full disclosure of all data and information required by the law.
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Compliance with implementing regulations.
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They must get a Ministry of Interior-approved digital identity.
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The investors must have a Saudi bank account in their own name.
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They must register a Saudi mobile number linked to their digital identity.
Family ownership
Under the new law, multiple residential purchases within a single foreign family are not permitted. A foreign spouse and non-Saudi children will be treated as dependents when acquiring a residential property.
They can separately own another property only if the marriage ends or the son or daughter reaches the age of 25.
Penalties
The updated real estate law includes provisions for various violations and their respective penalties. It also establishes committees within REGA to review violations.
General violations see penalties starting with a warning and potentially escalating to a financial fine not exceeding five per cent of the value of the in-rem right subject to the violation, capped at SAR10,000,000 (ten million Saudi Riyals).
Violations related to providing misleading information regarding real estate ownership may incur a financial fine of up to SAR10,000,000 and the sale of the property by public auction.
Before penalties are imposed, violators will be given between 10 and 180 days to rectify their status, depending on the nature of the violation.
How are rights protected?
The law ensures the protection of rights for all parties through mandatory in-kind real estate registration in the Real Estate Registry, documentation of ownership and in-rem rights, reduction of disputes, clear mechanisms for disposition, penalties for violations, and judicial objection procedures.
The Real Estate Registry is a collection of documents that shows the property’s descriptions, location, physical and legal status, associated rights and obligations, and modifications thereto, in light of legally recognised documents.
The register also includes a title registration deed and sheet in the Real Estate Registry.
The law permits ownership by non-Saudi individuals, companies, and entities, subject to clear controls that consider the public interest, preserve the religious and cultural values of Saudi society, and ensure that ownership does not compromise citizens’ rights or the stability of the local market.
Job opportunities
One of the objectives of the new law is to create job opportunities in the real estate sector.
The investments are expected to stimulate the legal and consulting market, increase demand for real estate brokerage, contracting, construction, valuation, facility management, and property management activities with the implementation of new real estate projects, thereby creating direct and indirect job opportunities in the real estate, construction, and building sectors.
