Saudi Arabia Restricts Property Ownership for Non-Saudis to Registered Real Estate Only

Saudi Arabia: Non-Saudis Can Own Only Registered Properties Under New Real Estate Law

The Real Estate General Authority (REGA) has confirmed that non-Saudis will be permitted to own only registered properties, under the newly updated Law of Real Estate Ownership by Non-Saudis. The law, approved in July 2025, will officially take effect in January 2026.

According to sources cited by Okaz, the updated law requires all non-Saudi property owners to disclose full data and information as outlined in regulatory provisions. The move aims to enhance transparency, regulate foreign ownership, and ensure that all transactions occur within the Kingdom’s legal framework.

Among the major features of the law are the imposition of taxes and fees totaling 10 percent, including a real estate transaction tax and additional administrative fees on non-Saudi property ownership. Violations of these regulations can result in fines reaching up to SR10 million, while any property acquired using misleading or false information will be subject to public auction.

The law identifies five eligible categories of non-Saudis who may own property in the Kingdom:

• Non-Saudi individuals

• Non-Saudi companies

• Saudi companies with foreign ownership shares

• Non-profit entities

• Diplomatic missions

REGA is expected to soon release a detailed document specifying the geographical zones where non-Saudis are allowed to own real estate. This will include maps and ownership guidelines for major cities such as Riyadh, Jeddah, Makkah, and Madinah, along with other cities and governorates. The document will define permitted ownership percentages, property types, grace periods, and regulatory procedures.

The updated framework allows foreigners and companies to own property for personal residence or business operations within designated areas. However, ownership remains subject to specific restrictions, fees, and executive regulations, which will be clarified by REGA in the coming months.

This move is seen as part of Saudi Arabia’s broader efforts to balance foreign investment with national interests, ensuring that real estate development aligns with Vision 2030 goals for sustainable urban growth and economic diversification.