Saudi Arabia's Foreign Property Ownership Law

[Fatima]

Effective January 2026, this law enables foreigners to acquire property in designated areas, providing new investment opportunities.

Who Can Buy?

[1] Foreign individuals with a valid residency permit (Iqama) or Premium Residency
[2] Foreign companies
[3] No Saudi citizenship required

Where Can You Buy?

[1] Designated Zones: Initially, foreigners can buy property in major cities like Riyadh and Jeddah
[2] Restricted Areas: Makkah and Madinah have special rules, requiring extra approvals due to religious and cultural reasons

Types of Property

[1] Residential properties (apartments, villas, houses)
[2] Commercial properties (offices, shops, retail spaces)
[3] Agricultural land

Application Process

[1] Wait for Executive Regulations: Final rules will be published within 180 days on the Istitaa platform
[2] Prepare Documents: Valid passport, proof of funds, business registration documents (if applicable)
[3] Submit Application: Apply through the Real Estate General Authority's portal
[4] Get Approval: Receive approval from the Ministry of Interior and register the property

Key Considerations

(1) Residency Requirement: Buyers need a valid Iqama or Premium Residency
(2) Government Approval: Government approval is required before completing a deal
(3) Digital Platforms: Digital tools like Absher and Istitaa will handle most paperwork
(4) Taxes and Fees: 5% real estate transaction tax applies to most purchases

Benefits and Implications

(1) Increased Foreign Investment: The new law aims to attract more foreign investment and boost the economy
(2) Growth Potential: Saudi offers higher potential returns and less bubble risk compared to other markets
(3) Clear Rules: Transparent buying processes and government approved titles provide legal clarity.