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Saudi Arabia has approved a new law regulating real estate ownership by non-Saudis, as announced by the Saudi Press Agency (SPA). The law marks an important policy shift aimed at strengthening the Kingdom’s investment environment while maintaining strong regulatory oversight. It supports Saudi Arabia’s long-term economic transformation under Vision 2030 by encouraging high-quality foreign investment. Once the implementation regulations are issued, the law will officially come into force. It replaces earlier fragmented rules with a single, unified legal framework for foreign property ownership.
Who Can Own Property Under the New Law
The new law allows non-Saudi individuals and entities to own real estate in Saudi Arabia, subject to specific controls. Eligible owners include:
- Foreign individuals (both residents and non-residents)
- Foreign companies and legal entities
- Licensed foreign investors and investment funds
Ownership is permitted only in designated zones approved by the competent authorities, ensuring organized urban and economic development. Special restrictions will continue to apply in Makkah and Madinah, in accordance with existing regulations.
Types of Properties Covered
The framework applies to a wide range of real estate assets, providing clarity for investors and developers. Permitted ownership may include:
- Residential properties
- Commercial buildings
- Industrial and logistics facilities
- Investment and development land
The exact scope will be clarified through executive regulations, which will define approved locations, usage conditions, and compliance requirements. This approach balances investment flexibility with national planning priorities.
Registration, Fees, and Compliance Requirements
All real estate owned by non-Saudis must be registered through the official Saudi real estate registration systems under the supervision of relevant authorities. The law allows for real estate transaction or disposal fees, which may reach a percentage set by regulation. Property owners must comply with zoning rules, permitted use, and disclosure obligations. Violations, including providing false information, may result in penalties. Property ownership does not grant residency, citizenship, or employment rights.
Why This Law Matters for Investors and Businesses
The new law significantly improves legal certainty and transparency for foreign investors entering the Saudi real estate market. It aligns with Saudi Arabia’s goals to attract foreign direct investment (FDI) and develop sustainable, globally competitive cities. Developers, businesses, and high-net-worth individuals now have a clearer path to long-term property investment. Overall, the law reflects a balanced approach between economic openness and regulatory control, reinforcing Saudi Arabia’s position as a leading investment destination.
