- Saudi Arabia has approved a modernized law allowing non-Saudis to own real estate, aiming to attract foreign investors and real estate development companies.
- Ownership will be permitted in specific geographic areas, primarily Riyadh and Jeddah, with special conditions applying to Makkah and Madinah.
- The updated system includes mechanisms to regulate the market, ensure compliance, and maintain real estate balance while safeguarding the interests of Saudi citizens.
In a significant move set to reshape the kingdom’s real estate landscape, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, on Tuesday approved the updated system for non-Saudis to own real estate. This decision is a crucial part of Saudi Arabia’s broader efforts to stimulate its real estate sector and attract direct foreign investment.
His Excellency Majid bin Abdullah Al-Hogail, Minister of Municipal and Rural Affairs and Housing and Chairman of the Board of Directors of the Real Estate General Authority, stated that the approval of the updated system at this time is an extension of real estate legislations aimed at developing the sector and encouraging foreign direct investment. He emphasized that this will contribute to increasing real estate supply by attracting investors and real estate development companies to the Saudi market.
The minister affirmed that the updated system considers the interests of Saudi citizens by incorporating mechanisms that ensure market regulation and adherence to specific procedures designed to achieve real estate balance. He further explained that the system has taken into account all economic and investment aspects, allowing ownership in designated geographic areas, particularly in Riyadh and Jeddah, with special conditions for ownership in Makkah and Madinah.
The Real Estate General Authority is tasked with proposing the geographical scope within which non-Saudis may own real estate or acquire other in-kind rights. The Authority will release the executive regulations for the system on the “Istitlaa” platform within 180 days from its publication in the Official Gazette.
The system is set to become effective in January 2026, as stipulated. The executive regulations will detail the procedures for non-Saudis to acquire real estate rights, the requirements for enforcing the system’s provisions, and the specifics of its application, taking into account all economic and social aspects.
This new system aligns with the provisions of the Premium Residency System and the regulations for GCC citizens’ property ownership in member states for residency and investment purposes, as well as other existing regulations that grant non-Saudis privileges for owning real estate and acquiring other in-kind rights. This initiative marks a significant boost for the Kingdom’s real estate sector and directly contributes to achieving the ambitious goals of Saudi Vision 2030.
العربية (Arabic) To read the article in Arabic, click here
