Can Foreigners Buy Property in Saudi Arabia? New Law and Rules

You are an Egyptian engineer who has lived in Riyadh for nine years, and you found an apartment for SAR 1,100,000 in the Al Narjis district. The seller is in a hurry, asks for a SAR 50,000 deposit, and says “foreigners are allowed to own property now”. That is partly true, but the conditions differ depending on who you are, where the property is and what it is for. Know them before you transfer a single riyal.

Can foreigners buy property in Saudi Arabia?

Yes, within limits set by the law. A non-Saudi may own property inside the geographic zones set by the Council of Ministers. A lawful resident may also own one property for his own home outside these zones, except in Makkah and Madinah. In all cases, you become the owner only after registration in the Real Estate Register.

This is what the Real Estate Ownership by Non-Saudis Law provides. It was issued by Royal Decree M/14 dated 19/1/1447H and published on 30/1/1447H (25 July 2025), and its Article 15 makes it effective 180 days after publication. Under Article 14, it replaced the 1421H law. Its Implementing Regulations were then published in the official gazette Umm Al-Qura on 18/1/1448H (3 July 2026). So any explanation based on the old law is no longer a reliable reference.

Article 2 leaves it to a Council of Ministers decision to set the geographic zones, the types of property rights allowed, the maximum ownership percentages, and the length of any usufruct (right of use). The Council of Ministers approved these zones at its session of 8/1/1448H (23 June 2026), the same session in which it approved the Implementing Regulations by Resolution No. 43. The zones include major cities such as Riyadh and Jeddah, with special rules for Makkah and Madinah, and can be viewed interactively on the «Saudi Real Estate» (Aqarat Al-Saudia) portal. Check the property's own location on the portal before paying anything. Owning the property itself is different from acquiring a right to use it for a set period. This is why three questions decide your position before any step: who is the buyer, where is the property, and what is it for.

Can a resident buy a home to live in? What about a non-resident?

Yes, with one clear condition. Article 2(3) gives a non-Saudi individual lawfully resident in the Kingdom the right to own one property for his own home outside the geographic zones, except in Makkah and Madinah. It is one property, for living in, not for investment.

Article 7 of the Regulations treats the resident's non-Saudi spouse and children as dependants under this right. None of them may separately own an independent residential property unless the marriage ends or the child reaches 25 years of age. So do not plan one apartment in your name and another in your wife's name on this basis.

A non-resident must, under Article 2 of the Regulations, complete three steps before owning property: obtain the digital ID, open a bank account in the Kingdom in his name, and get a Saudi phone number in his name linked to the digital ID. These are procedural requirements; they do not make a property available if it is not in a permitted zone.

Can foreigners own property in Makkah and Madinah?

Article 2(4) limits ownership in Makkah and Madinah, for individuals, to Muslim natural persons, within the zone set by the Council of Ministers. The resident's home route outside the zones does not cover these two cities at all.

Companies have separate rules. Article 3 allows an unlisted Saudi company with foreign shareholders to own property within the geographic zones, including Makkah and Madinah. Article 4 makes ownership by listed companies, investment funds and special purpose entities subject to the Capital Market Law and the rules of the Capital Market Authority.

A Saudi company with a foreign partner: can it buy an office or staff housing?

Yes. Article 8 of the Regulations allows it to own property outside the geographic zones to carry out its activity or to house its employees, except in Makkah and Madinah, provided it obtains the approval of the Ministry of Investment before owning. Inside the zones, including Makkah and Madinah, it does not need this approval. Giving false information about the real need for the property to obtain the approval is a violation with graded fines in the Regulations' schedule.

A non-Saudi company, meaning one established outside the Kingdom, must under Article 3 of the Regulations register with the Ministry of Investment and disclose its direct and indirect owners. Its representative must hold an ID issued under Saudi law, it must open a bank account in the Kingdom, and it must inform the Ministry within 15 days if 5% or more of its ownership changes hands.

A resident wants to buy a villa to live in, in a district outside the geographic zones, and the Saudi company in which he holds a share wants to buy a warehouse in the same district.

The two requests are not treated the same way. The first follows the resident's single-home route under Article 2(3). The second follows the company route, which needs Ministry of Investment approval before ownership because it is outside the zones.

If the company bought the villa for him to live in, this would be valid only if it is housing for its employees, and with the same approval.

How much is the fee, and when do you actually become the owner?

Article 9 of the Law sets a maximum fee of 5% of the transaction value. The Regulations set the actual fee at 2% on all rights and uses in the city of Riyadh, the city of Makkah, the city of Madinah and Jeddah Governorate. Article 10 of the Regulations sets a zero fee for transactions outside these cities, and in other cases including division of an estate, enforcement of a court judgment, and expropriation. So an apartment for SAR 1,100,000 in Riyadh carries a fee of SAR 22,000, without prejudice to any other taxes or fees.

The application is filed through the electronic portal set up by the Real Estate General Authority (REGA) and linked to the Real Estate Register, and all payments are made by electronic payment methods under Article 6 of the Regulations. Article 8(2) of the Law is clear: ownership is valid only after it is registered in the Real Estate Register. Article 6 states that ownership gives no rights or privileges other than the owner's rights, so buying property does not give you residency or citizenship.

What about property owned before the new law, and what is the penalty for violations?

Earlier ownership remains. Item 2 of Royal Decree M/14 states that the law's entry into force does not affect real estate ownership rights lawfully acquired by non-Saudis and legal persons before it, nor the rules that prohibit ownership in specific places and locations.

Violations of the Law or Regulations are heard by a committee formed by the Authority. Under Article 10, the penalty is a warning or a fine of up to 5% of the value of the right, capped at SAR 10 million, and Article 12 of the Regulations requires the committee to set a correction period between 10 and 180 days. A person who deliberately gave misleading information to obtain ownership faces, under Article 12 of the Law, a fine within the same limit plus sale of the right, with the Public Prosecution investigating and prosecuting. The committee's decision may be challenged before the Administrative Court within 60 days of notification under Article 11; this is a different path from a refusal of the purchase application itself.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.

Practical solutions for both sides

If you are the non-Saudi buyer:

• First identify your status: a resident buying his home, a non-resident, or a company.
• Check that the property is in a permitted zone, or that it is your only home outside the zones and not in Makkah or Madinah.
• If you are a non-resident, prepare the digital ID, bank account and phone number before negotiating.
• Make the deposit conditional on completing registration, and ask for it to be returned if the application is refused for a reason outside your control.
• If your application is refused, find out the exact reason and complete what is missing. Do not change your details against the truth; misleading information ends with the property being sold.
• Include the fee in your calculation if the property is in Riyadh, Jeddah, Makkah or Madinah.

If you are the seller:

• Ask the buyer about his status and residency before reserving the property for him.
• Do not receive the full price or hand over the property before confirming that ownership can be registered in his name.
• Write in the contract who pays the fee, the deadline for completing the requirements, and what happens to the deposit if the application is refused.
• Do not accept cash payments; payments are made by electronic payment methods.

If you are a resident or an investor and want to confirm your eligibility before signing, send us the property details and your residency type or your company's registration on WhatsApp, and we will review the right route with you.