Saudi Arabia outlines new non-Saudi real estate ownership rules

The new regulations, which came into force in July, have been designed to provide a more structured approach procedural frameworks to enable foreign individuals, companies and other entities to own real estate and property rights in the Kingdom.

The move, which comes in the framework of the ongoing Vision 2030 initiative to attract foreign capital and increase tourism and investment into the kingdom, follows similar moves elsewhere in the Gulf in recent years.

The new regulations, together with the Non-Saudis Real Estate Ownership Manual and the Saudi Properties platform curated by the Real Estate General Authority (REGA), outline rules, procedures and the geographical scope where foreigners will be permitted to obtain property rights.

Philip Corfield-Smith, a Middle East property expert with Pinsent Masons, said despite the initial restrictions, the move would provide clear and useful guidance for international firms and people looking to invest in property in the Kingdom.

“This is a significant development because it provides the practical framework needed to implement Saudi Arabia’s new foreign real estate ownership regime,” he explained.

“The regulations clarify eligibility, registration, disclosure, transaction, and compliance requirements for foreign investors, helping to increase legal certainty, transparency, and accessibility in the Saudi real estate market.”

Under the regulations, non-resident individuals are required to get digital identity registration in KSA, along with opening a bank account in the country and securing a mobile number registered in Saudi Arabia. The new Regulations sit alongside separate residential ownership rights for non-Saudi individuals who have a valid residency permit or premium residency in the Kingdom, or who are GCC citizens.

Foreign companies, along with some international non-profit entities, will need to register with REGA which will oversee transactions, disclose direct and indirect owners or controllers of real estate, and report specified ownership or control changes within prescribed timeframes. 

The new regulations also preserve a special framework for the holy cities of Makkah and Madinah. While non-Saudis may generally acquire ownership rights within the geographical scope of the law, ownership rights in these cities are subject to additional restrictions. Under the law, ownership in Makkah and Madinah by individuals is limited to Muslims. The position differs for Saudi-incorporated companies with foreign shareholders, which may own real estate within the designated geographic zones in Makkah and Madinah. Separate arrangements for Saudi companies with foreign shareholders will also apply, opening opportunities for investment through joint ventures and subsidiaries in the country.