Saudi Arabia has officially announced a new law allowing foreigners to own property in the Kingdom, marking a major change in its real estate policy.
The law, approved by the Cabinet earlier this month, was published in the official gazette Umm Al-Qura on Friday. It will come into effect after 180 days.
Under the new law, foreigners — including individuals, companies, and non-profit organizations — will be allowed to own real estate or obtain rights like usufruct (beneficial use) and leaseholds in specific areas. The locations where foreigners can buy property will be decided by the Council of Ministers.
However, ownership in Makkah and Madinah will remain restricted. Only individual Muslim foreigners may own property there under certain conditions.
Foreign residents living legally in Saudi Arabia can now buy one residential property for personal use, but not in restricted zones like Makkah and Madinah.
The law also allows companies with foreign shareholders and investment funds to own property across the Kingdom, including in the holy cities, if it’s for business operations or employee housing.
Diplomatic missions and international organizations will also be allowed to own premises for official use, subject to approval from the Foreign Ministry.
All property ownership by foreigners must be registered with the national real estate registry. A property transfer fee of up to 5% will apply to transactions involving foreigners.
Violations of the new law may result in fines up to 10 million Saudi Riyals, and in serious cases, authorities may order the forced sale of the property.
This new law replaces the old foreign ownership law issued in 2000. Detailed regulations on how the law will be implemented are expected within six months.
