Have you ever thought about the possibility of owning property in Saudi Arabia as a foreigner? In fact, this is now possible under clear regulations established by the Kingdom, whether you are a non-Saudi individual, a foreign investor, or a non-Saudi company.
The system specifies the conditions and controls for each category, and aims to encourage real estate investment while preserving the rights of citizens and regulating the real estate market. In this article, we review the system in detail, explaining the categories allowed to own property, the mechanism of ownership, and the legal conditions required for each category.
Can non-Saudis own property in Saudi?
Non-Saudis are allowed to own real estate in accordance with Royal Decree No. (M/14) dated 1447/1/19 AH on the system of non saudis property ownership. This guarantees the rights of non-Saudis who owned real estate or acquired rights in kind before the implementation of this system, while complying with laws that prohibit ownership in certain areas.
The system also repealed the previous Royal Decree No. (44) of 1377 AH and amended the provisions regulating the ownership of GCC citizens in Makkah and Madinah, so that the new application became fully effective.
The system of non saudis property ownership consists of 15 articles, the most important of which are as follows:
First: Definition of the system and categories (Article 1)
The system of non-Saudi ownership of real estate specifies the categories permitted to own property in the Kingdom of Saudi Arabia. These categories include non-Saudis, non-Saudi companies, foreign non-profit entities, and any non-Saudi legal entity specified by the Council of Ministers in an official decision.
This clear definition aims to regulate real estate ownership by non-Saudis in a legal manner, ensuring the protection of the real estate market and investors’ rights, while preserving the public interest of Saudis.
Second: Scope of ownership and general conditions (Article 2):
The system allows foreigners to own real estate or acquire real rights within the geographical scope specified by the Council of Ministers, which includes certain cities and specific areas. The Council also specifies:
- The types of real rights that may be acquired.
- The maximum ownership percentages.
- The duration of the right of use.
- Any additional restrictions on ownership.
Non-Saudis who are legally resident are permitted to own one residential property outside the specified area, with the exception of Makkah and Madinah, where ownership is restricted to Muslims to ensure compliance with local laws.
Third: Foreign companies (Articles 3 and 4)
The non Saudis property ownership system allows companies not listed on the financial market and institutions established under the Saudi Companies Law and owned by one or more non-Saudis to own property or acquire other real rights within the permitted geographical area, including the cities of Mecca and Medina.
These companies may own real estate to cover their commercial activities or to house their employees, whether within or outside the permitted area, as specified in the implementing regulations. As for companies listed on the financial market, investment funds, and legally licensed establishments, they may own property in accordance with financial market regulations, which promotes foreign real estate investment in the Kingdom in a legal and organized manner.
Fourth: Relationship with premium residency (Article 5)
The system clearly states that its application does not conflict with the rights of real estate owner residency in Saudi Arabia . In other words, holders of premium residency can combine the benefits of this system with the privileges of premium residency, giving them greater freedom to own real estate for non-Saudis and take advantage of systems that grant better rights when investing in real estate
Fifth: Registration and fees (Articles 8 and 9)
The system requires that the ownership of real estate or the acquisition of other real rights be registered with the General Authority for Real Estate and the Real Estate Registry in order for the ownership to be valid and legally effective. Non-Saudis are also required to pay a fee on the value of the real estate transaction not exceeding 5% of the value of the property, which ensures the regulation of real estate transactions and the preservation of the rights of all parties.
Sixth: Violations and penalties (Articles 10 and 12)
This system clarifies the method of dealing with violators, with penalties including warnings and fines of up to 5% of the value of the property, with a maximum of SR 10 million. In the event that misleading or incorrect information is provided that leads to ownership, a fine may be imposed and the property sold, with the remaining proceeds transferred to the treasury after deducting the fines, to ensure compliance with the laws and protect the real estate market.
Seventh: Executive Regulations (Article 13)
The Council of Ministers shall issue executive regulations to clarify all detailed procedures for implementing the real estate ownership system for non-Saudis, including:
- Procedures for purchasing real estate and acquiring real rights.
- Conditions that non-residents must meet.
- The value of fees according to the type of real rights and the purpose of the real estate.
- Cases exempt from fees.
These regulations must be issued within 180 days of the publication of the system to ensure the orderly implementation of the law and enable foreign investors and companies to know their rights and obligations before ownership.
In short, the system of non saudis property ownership in Saudi Arabia allows foreign individuals and companies the opportunity to purchase real estate in a legal and organized manner, while protecting the rights of all parties. This is where the role of asset valuation service and Saudi Arabia property valuation comes in as an important and indispensable element, as it ensures that the market value of the property is accurately determined, protecting both the investor and the citizen.
Contact Aain, one of the most important company real estate valuers in the Kingdom, if you need an asset valuation service and valuation report to help you invest with confidence and security in the Saudi market.
Frequently asked questions:
- Will Saudi Arabia allow foreigners to own real estate in 2026?
Yes, foreigners are allowed to own real estate in Saudi Arabia under the Non-Saudi Real Estate Ownership System, subject to the conditions and restrictions specified by the system, including geographical scope, type of property, and permitted ownership ratios. The benefits of this system can also be combined with the rights of holders of Saudi Special Residence Permits who are property owners, allowing foreigners to invest in real estate with security and confidence.
- What is the foreign ownership limit in Saudi Arabia?
The non-Saudi real estate ownership system allows foreign nationals residing in the Kingdom to own only one property for residential purposes outside the specified geographical area, with the exception of the cities of Makkah and Madinah, where ownership is restricted to Muslims. Foreign companies and non-profit entities may own more than one property in accordance with their commercial or investment activities, subject to the conditions and regulations specified in the system and the executive regulations.
- Can you get residency in Saudi Arabia by buying property?
Yes, buying property in the Kingdom of Saudi Arabia can grant premium residency to the property owner, provided that several conditions are met, the most important of which are that the property must be an existing residential property with a value of not less than four million Saudi riyals, and that it must have a saudi arabia property valuation approved by a real estate valuer accredited by the Saudi Authority for Accredited Valuers.
The property must also be unencumbered, and the buyer must have full rights of ownership or use. The duration of the premium residency is determined by the duration of ownership or use of the property, which gives foreign investors the freedom to own and benefit from the advantages of the system legally and securely.