The Updated Legal Framework
Saudi Arabia’s updated Law of Real Estate Ownership by Non-Saudis entered into force on 22 January 2026. On 23 June 2026, the Real Estate General Authority announced the Council of Ministers’ approval of the geographical zones and the Executive Regulations for the updated law, and the approval decision for the Executive Regulations was subsequently published in Umm Al-Qura on 3 July 2026. The updated law replaces the former regime while preserving rights that were lawfully established before its entry into force.
The law does not create unrestricted ownership across every location. Ownership and other real rights are permitted within approved geographical zones and subject to the rules assigned to each zone. The specific property must therefore be checked before any deposit or binding commitment is made.
This article is educational and was reviewed on 16 August 2026. Eligibility and property availability should be reconfirmed through the Real Estate General Authority portal, the approved geographical zones in the Saudi Properties portal, the Real Estate Registry, and the competent authorities when a transaction is submitted.
What a Geographical Zone Determines
The geographical-zone decision identifies where a non-Saudi may own real estate or acquire another real right. It may also determine the permitted type of right, the maximum non-Saudi ownership percentage, the maximum duration of usufruct, and additional controls applying to the location.
The city name alone is not enough to establish eligibility. The result may depend on the exact property location, its designated use, the right being acquired, and the legal status of the applicant. The official Saudi Real Estate portal is the practical reference for the applicable map and conditions.
Who Is Treated as a Non-Saudi
The law covers a natural person who does not hold Saudi nationality, a foreign company, a foreign non-profit entity, and any other foreign legal person designated by the Council of Ministers.
Requirements differ by applicant. A lawfully resident individual is not treated in the same way as a non-resident individual, and a Saudi company with foreign shareholders follows a different route from a foreign company or an investment fund.
Lawfully Resident Individuals
In addition to the rights available within approved geographical zones, a non-Saudi natural person who is lawfully resident in the Kingdom may own one property designated for personal residence outside those zones.
This additional residential exception does not apply in the cities of Makkah or Madinah. The regulations also treat the non-Saudi spouse and descendants as dependants for this residential property, subject to the detailed family rules in the regulations.
Requirements for a Non-Resident Individual
Before acquiring property or another real right, a non-resident non-Saudi natural person must obtain an approved digital identity, open a bank account in the Kingdom in their own name, and obtain a Saudi telephone number linked to that digital identity.
Completing these steps does not automatically approve a particular property. They are preliminary requirements that come before verification of the geographical zone, right type, percentage limit, and property-specific controls.
Ownership in Makkah and Madinah
For a non-Saudi natural person, the right to own property or acquire another real right in the cities of Makkah and Madinah is restricted to Muslims.
Being Muslim does not by itself make every property in either city available. The property must fall within an approved geographical zone, and the proposed right, use, percentage, and duration must comply with the controls published for that zone.
The additional right of a lawful resident to own one home outside the approved zones does not extend to Makkah or Madinah. Residence status or religion should therefore never be treated as final approval without checking the property and the official zone rules.
Companies and Investment Vehicles
A non-listed Saudi company with one or more non-Saudi shareholders may acquire property within an approved geographical zone, including in Makkah and Madinah, subject to the law and its regulations.
Saudi-listed companies, investment funds, and licensed special-purpose entities are governed by the Capital Market Law, its implementing regulations, and the controls issued by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant bodies.
Foreign companies and other foreign legal entities have separate registration, disclosure, representative, and banking requirements. The purchaser’s precise legal capacity should be identified at the beginning of the transaction.
Practical Application and Registration
The process begins by identifying the applicant’s legal status and checking the property’s geographical zone, permitted right, ownership percentage, usufruct duration, and use-related restrictions.
Applications are submitted through the electronic portal established by the Real Estate General Authority and linked to the Real Estate Registry. Financial transactions connected with ownership, acquisition, or disposition must be completed through electronic payment methods in accordance with the applicable payment rules.
After the required approvals and conditions are satisfied, registration and title issuance are completed through the Real Estate Registry. Ownership or acquisition of the real right becomes legally valid after registration under the applicable rules.
The 2% Disposition Fee
The Executive Regulations set a 2% fee on the value of a non-Saudi’s disposition of real rights in Riyadh, Makkah, Madinah, and Jeddah for the right types and uses covered by the regulatory table.
The official wording concerns a disposition or transfer by a non-Saudi. It should not automatically be described as a universal acquisition fee charged to every non-Saudi buyer. The regulations also identify transactions that are subject to a zero rate.
The fee does not replace other taxes or charges imposed under Saudi law. Total transaction cost should be calculated after reviewing real estate transaction tax, registration, brokerage, financing, and other applicable obligations.
Compliance and Accurate Information
Applicant information, legal capacity, property details, and beneficial ownership disclosures must be accurate and complete. Deliberately providing false or misleading information that results in ownership may lead to a fine of up to 5% of the value of the real right, capped at SAR 10 million, as well as the sale of the real right under the statutory process.
Property ownership does not by itself grant residence, nationality, or privileges beyond the rights legally attached to the real right. The law also preserves more favorable rights available under other regimes, including Premium Residency rules and the rules applicable to GCC citizens.
Before Signing or Paying a Deposit
Confirm the buyer’s eligibility and legal capacity, the property’s approved geographical zone, the permitted right and percentage, title and registry status, mortgages, restrictions, and planning use.
A preliminary agreement should expressly make completion conditional on regulatory approval and registration and should state what happens to the deposit if ownership cannot proceed for a legal reason.
Official Sources
- Law of Real Estate Ownership by Non-Saudis — Umm Al-Qura Official Gazette
- Executive Regulations of the Non-Saudi Property Ownership Law — Real Estate General Authority
- Approved Geographical Zones for Non-Saudi Ownership — Saudi Properties Portal
- Non-Saudi Property Ownership Portal — Real Estate General Authority
- Council of Ministers Approval of the Geographical Zones and Executive Regulations — Real Estate General Authority
- Entry into Force of the Non-Saudi Property Ownership Law — Real Estate General Authority
01
Decision Checklist
- Eligibility depends on the geographical zone, permitted right, and property-specific controls.
- A non-Saudi natural person in Makkah or Madinah must be Muslim, but zone rules still apply.
- The one-home residential exception for lawful residents does not apply in Makkah or Madinah.
- A non-resident individual needs a digital identity, Saudi bank account, and linked Saudi telephone number.
- Applications and registration proceed through official channels linked to the Real Estate Registry.
- The 2% fee concerns a non-Saudi disposition of a real right in specified locations, not every purchase.
- Deposits and preliminary contracts should be conditional on approval and registration.
02
Frequently Asked Questions
01 Can a non-Saudi buy property in any city or district?
No. The property must be within a zone that permits the proposed ownership or real right and must comply with the permitted right type, percentage, use, duration, and controls.
02 Is being Muslim enough to own property in Makkah or Madinah?
It is a required condition for a non-Saudi natural person, but it is not the only condition. The property must also fall within an approved zone and satisfy all other applicable rules.
03 May a lawful resident own one home outside the zones?
A lawfully resident non-Saudi natural person may own one property for personal residence outside the zones, but this exception does not apply in Makkah or Madinah.
04 What must a non-resident individual obtain first?
An approved digital identity, a Saudi bank account in their own name, and a Saudi telephone number linked to the digital identity, followed by the property and zone requirements.
05 Is the 2% amount a purchase fee on every non-Saudi buyer?
That is not the precise regulatory description. The regulations apply it to the value of a non-Saudi disposition of real rights in Riyadh, Makkah, Madinah, and Jeddah, with listed zero-rate cases.
06 Does property ownership grant residence or nationality?
No. Ownership grants only the rights legally attached to the real right and does not itself confer residence, nationality, or other privileges.
07 Where should final property eligibility be checked?
Through the Real Estate General Authority portal, the official geographical-zone information, the Real Estate Registry, and the competent authorities at the time of application.
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