Foreign Property Ownership in Saudi Arabia
Everything you need to know about property ownership and investment in the Kingdom of Saudi Arabia.
Everything You Need to Know About
the Updated Property Ownership Law for Non-Saudis
What Is the Updated Regulation?
It is a regulatory framework that sets out the rules and conditions governing property ownership in Saudi Arabia by non-Saudi individuals, companies, and entities. The regulation aims to balance investment attraction with the protection of national interests, while taking into account the Kingdom’s religious, cultural, and social considerations.
When Was the Regulation Issued?
What Does the Regulation Cover?
The updated regulation consists of 15 regulatory articles covering:
- Regulating property ownership by Non-Saudis
- Defining the categories eligible for property ownership
- Specifying the permitted geographic areas and zones
- Issuing the Implementing Regulations, which set out the mechanisms for implementation and interpretation
Why Was the Regulation Updated?
The regulation was updated as part of Saudi Arabia’s efforts to further develop its real estate and investment environment, with the aim of:
- Aligning with modern real estate laws and regulations
- Adopting international best practices
- Supporting a stable and secure investment environment
- Advancing the objectives of Saudi Vision 2030
- Enhancing the efficiency and governance of the real estate sector
What Are the Main Objectives of the Regulation?
Attracting foreign direct investment (FDI) to Saudi Arabia’s real estate market
Increasing the real estate sector’s contribution to the Gross Domestic Product (GDP)
Attracting global talent and enabling them to establish and settle in the Kingdom
Supporting the growth of non-oil sectors and strengthening their role in the national economy
Promoting sustainable economic development and diversifying sources of income
Enhancing the quality of urban living and housing in line with the objectives of Saudi Vision 2030
Who Is Eligible to Own
Property in Saudi Arabia?
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Non-Saudi Companies
This includes companies established within or outside Saudi Arabia in accordance with the applicable regulations.
Special Purpose Entities (SPEs)
Entities in which non-Saudis hold an ownership interest in the share capital.
Foreign Investment Funds
Approved and regulated in accordance with the applicable laws and regulations.
Foreign Non-Profit Entities
Subject to the requirements set out in the updated regulation and its implementing regulations.
International Organizations and Agencies
Including international organizations, representative offices, and agencies, subject to the principle of reciprocity and the required official approvals.
Which Areas Are Available for
Property Ownership in Saudi Arabia?
Makkah
Ownership Subject to Specific Conditions
Non-Saudis may own property in Makkah under specific conditions applicable to Muslims or in accordance with special regulations that ensure compliance with the Kingdom’s applicable laws and regulations.
Madinah
Ownership Subject to Specific Conditions
Non-Saudi Muslims may own property within approved areas in Madinah, subject to conditions similar to those applicable in Makkah.
Riyadh
Non-Saudis may own property in Riyadh within designated areas, in accordance with the applicable regulations, ensuring a balanced real estate market and the protection of national interests.
Jeddah
Property ownership by Non-Saudis is permitted in Jeddah within designated areas and under carefully defined regulations that promote a stable real estate market and protect investors’ interests.
Frequently Asked Questions About
Property Ownership for Non-Saudis
Non-Saudis may own property in Riyadh within designated areas, in accordance with the applicable regulations, ensuring a balanced real estate market and the protection of national interests.
Will the Regulation Contribute to Creating Job Opportunities for Saudi Citizens?
- Real Estate Brokerage
- Contracting and Construction
- Real Estate Valuation
- Facilities and Property Management
- Legal and Consulting Services, through the development and implementation of new real estate projects, creating direct and indirect employment opportunities across the real estate and construction sectors.
What Types of Properties Can Non-Saudis Own?
Is This the First Regulation Allowing Non-Saudis to Own Property in Saudi Arabia?
No. The first regulation governing property ownership and investment by Non-Saudis was issued in 2000. The current regulation, issued in Muharram 1447 AH (July 2025), is an update to the previous regulation. It consists of 15 regulatory articles defining the conditions and mechanisms for property ownership, in addition to implementing regulations that provide detailed guidance on implementation and the geographic areas where property ownership is permitted.
What Are the Expected Benefits of the Regulation for the Real Estate Sector?
The regulation is expected to deliver several key benefits, including:
- Increasing property supply and promoting a balanced real estate market
- Increasing property supply and promoting a balanced real estate market
- Enhancing the quality of real estate projects and development
- Strengthening competitiveness within the real estate sector
- Stimulating real estate activity across all market segments
Does the Regulation Affect Property Ownership by Saudi Citizens?
The regulation was developed following a comprehensive assessment of social, economic, and investment considerations, while ensuring the protection of Saudi citizens’ interests and preserving their opportunities for property ownership.
It also designates specific geographic areas for property ownership, particularly in Riyadh and Jeddah, with special provisions for Makkah and Madinah that respect the religious significance of both cities.
In addition, the regulation includes regulatory and oversight mechanisms designed to promote balance and stability within the real estate market.