Real estate and legal reference

Foreign ownership of real estate in Saudi Arabia

An updated practical reference to Saudi Arabia’s foreign real estate ownership framework, eligibility, requirements, process, geographic zones and official sources.

Last updated: 26 August 2026 Effective since 22 January 2026

Legal framework

What changed?

The updated law creates a unified framework under which individuals, companies and entities may acquire ownership or other real rights within defined controls and geographic zones. REGA is the principal regulator and Saudi Properties is the official digital channel.

Rights lawfully established before the law took effect are preserved, and restrictions imposed by other laws on specific locations remain applicable.

Who may own?

Resident individuals

A lawfully resident non-Saudi individual may own one residential property outside designated geographic zones, except in Makkah and Madinah, subject to all other legal requirements.

Non-resident individuals

Ownership or other real rights may be acquired within approved zones and controls after obtaining a digital identity, a Saudi bank account and a Saudi mobile number in the applicant’s name.

Companies and entities

Requirements vary by entity type, place of incorporation and purpose. Some cases require Ministry of Investment registration, beneficial-owner disclosure and a Saudi bank account.

Makkah and Madinah

Special rules apply. Ownership by a non-Saudi natural person is limited to Muslims and remains subject to announced zones, rights, percentages and controls.

Special note for Makkah and Madinah

For a non-Saudi natural person, ownership in the two holy cities is limited to Muslims. This condition alone is not sufficient: the property must also be within a permitted zone and comply with the published right type, ownership cap and any usufruct term.

Legal interpretation summary

How should the holy-city restrictions be understood?

The following summary is an editorial overview based on the law, its regulations and official sources. It is neither the text of Article 16 nor an official interpretation of it.

Commentary on the former law described a broad restriction on non-Saudis acquiring ownership, easement or usufruct rights in Makkah and Madinah, with limited exceptions. The current law reorganizes the issue around buyer status, geographic zones, right type and published controls.

Current summary: a Muslim non-Saudi natural person may own in Makkah or Madinah only within approved zones and limits. Separate paths apply to Saudi companies with foreign ownership, listed companies, funds and special-purpose entities. Nationality or religion alone is therefore not final approval, and older commentary should not be applied without checking the current law, regulations and zone map at the time of application.

Ownership journey step by step

01

Identify the buyer type

Resident or non-resident individual, Saudi company with foreign ownership, foreign company, fund or other entity; each follows a different path.
02

Check the geographic zone

Use the official map to confirm the permitted right, ownership cap, usufruct term and location-specific controls.
03

Prepare identity and accounts

A non-resident individual needs a digital identity, Saudi bank account and Saudi mobile number. Entities have additional registration and disclosure requirements.
04

Perform legal and technical due diligence

Verify title registration, ownership, liens, land use, permits, plans and financial liabilities before paying a non-refundable deposit.
05

Apply through the official portal

Applications for ownership, other real rights and dispositions are submitted through Saudi Properties, which connects to the real estate registry.
06

Complete payment and registration

Related payments must use electronic channels, after which registration and title issuance are completed under applicable regulations.

Important fees and obligations

The Implementing Regulations set a 2% fee on dispositions of real rights by a non-Saudi in Riyadh, Makkah, Madinah and Jeddah within Article 9’s scope. Article 10 specifies cases where this fee is zero.

Real estate transaction tax, brokerage, valuation, registration and financing charges may also apply depending on the transaction. Do not rely on a single percentage without reviewing the deal structure and competent authorities.

Intentionally providing false or misleading information may lead to a fine of up to 5% of the real right’s value, capped at SAR 10 million, together with sale of the right under the penalties schedule.

Pre-contract checklist

✓Owner identity and valid authority
✓Title and real estate registration status
✓Mortgages, seizures and registered rights
✓Zone, use and permitted right type
✓Permits, plans and violations
✓Service and owners-association liabilities
✓Deposit mechanism and refund terms
✓Taxes, fees and total acquisition cost

Sources and references

Always begin with official sources. Private commentary may help explain concepts but does not replace the law, regulations, decisions or current zone data.

Disclaimer

This guide is general information, not legal, tax or investment advice, and does not confirm any person’s or property’s eligibility. Zones, controls and procedures can change; verify the official portal and obtain licensed advice before committing or transferring funds.