In its issue published yesterday, Friday, the Umm al-Qura newspaper published the Executive Regulations for the Law on Real Estate Ownership by Non-Saudis, which included a set of controls and procedures governing real estate ownership and the acquisition of property rights by non-Saudis, as part of the implementation of the law that took effect at the beginning of this year.
The the Executive Regulations for the Law on Real Estate Ownership by Non-Saudis —a comprehensive regulatory framework aimed at regulating real estate ownership and rights in rem in the Kingdom through standardized procedures covering non-Saudi individuals, establishments, and entities, while relying on digital transformation and strengthening disclosure and oversight requirements, thereby contributing to increased transparency and the regulation of the real estate market.
The regulations include requirements that vary depending on the status of the owner—whether a natural person, a company, or a nonprofit organization—with all categories required to submit regulatory data and disclose material information, and linking ownership and property transfer procedures to the real estate registry and approved electronic payment platforms.
Requirements Before Purchasing Real Estate
The regulations require non-Saudi, non-resident individuals to complete a number of procedures before finalizing any property purchase, starting with obtaining a digital ID approved by the Ministry of Interior, followed by opening a bank account within the Kingdom, as well as registering a Saudi phone number linked to the digital ID, thereby ensuring the verification of the customer’s identity and linking all their financial procedures and transactions to official systems.
New Requirements for Foreign Companies
The regulations also impose specific obligations on non-Saudi companies wishing to own real estate, requiring them to register with the Ministry of Investment in accordance with mechanisms to be determined by the General Real Estate Authority, disclose the direct and indirect owners and beneficial owners, appoint a legal representative within the Kingdom holding a valid ID, and open a bank account in the company’s name.
Companies are required to notify the Ministry of Investment within 15 days of any change in ownership structure if the transfer percentage reaches 5% or more, whether it occurs in a single transaction or multiple transactions, The reporting requirement also covers any arrangements that grant other parties the ability to influence the company’s decisions or limit its independence.
Regulations for the Nonprofit Sector
The provisions were extended to non-Saudi nonprofit organizations and entities, requiring them to register with the National Center for the Development of the Nonprofit Sector, along with disclosing the persons who directly or indirectly control them, appointing an authorized legal representative, and opening a bank account within the Kingdom.
These entities are also required to notify the Center of any material changes related to their organizational structure or to persons with influence over decision-making, or when arrangements are made that grant another party significant authority, within a period not exceeding 15 days.
Coverage of All Legal Entities
The requirements were not limited to companies and nonprofit organizations, but also included any non-Saudi legal entities that the Council of Ministers may decide to subject to the system in the future, requiring them to register with the competent authorities, disclose their owners and controllers, appoint a legal representative, open a bank account, and report any material changes within the statutory period.
A Unified Electronic Platform
The regulations approved the establishment of an electronic portal overseen by the General Real Estate Authority, directly linked to the Real Estate Registry, to serve as the sole channel for receiving applications for ownership, disposition, and the acquisition of real rights, whether for non-Saudis or for Saudi companies in which non-Saudi investors hold shares.
It also stipulates that all payments related to sales, purchases, or the transfer of real rights must be made exclusively through electronic payment methods approved by the Saudi Central Bank, while real estate deeds are issued and ownership transfer procedures are completed electronically through the Real Estate Registry.
Regulation of Family Ownership
With regard to non-Saudi families, the regulations establish controls that prohibit multiple ownership of residential units within a single family, as the husband and his non-Saudi children are considered a single unit for the purpose of home ownership, with ownership of a separate residence permitted only in the event of the dissolution of the marriage or when the children reach the age of twenty-five.
Privileges for Saudi Companies with Foreign Partners
The regulations grant Saudi companies not listed on the stock market, in which non-Saudis hold equity, the right to own real estate outside the specified geographic areas—with the exception of Mecca and Medina—for use in conducting their business activities or housing their employees, subject to approval by the Ministry of Investment.
It also allows these companies to own real estate within the specified geographic areas, including Mecca and Medina, provided they comply with the regulations set forth in the law.
Fees on Transactions and Various Exemptions
The regulations set a fee of 2% on transactions related to real estate rights in kind for non-Saudis in the cities of Riyadh, Jeddah, Makkah, and Madinah.
Conversely, ten cases are exempt from this fee, including the division of estates, expropriation for public benefit, final court rulings, donations to government agencies and endowments, the return of real estate to its former owner within 180 days under specific conditions, and the division of jointly owned real estate without altering ownership shares, as well as certain transactions involving diplomatic missions and international organizations; the transfer of real estate to companies or funds wholly owned by the individual; and the sale of units resulting from the development of land owned by non-Saudis in accordance with specified regulations.
Electronic Monitoring and Strict Penalties
The regulations confirm that all statutory notifications are considered valid if sent via the electronic portal or through text messages to verified phone numbers, and it required the General Real Estate Authority to issue a procedural guide clarifying the implementation steps and enforcement mechanisms.
The regulation grants the Authority’s inspectors the authority to monitor and document violations, while giving violators the opportunity to rectify their situations within periods ranging from 10 to 180 days, depending on the nature of the violation.
The regulations adopted a graduated scale of penalties, starting with a warning in some cases, followed by fines ranging from 0.1% to 5% of the value of the real property right subject to the violation, not to exceed 10 million riyals, particularly in cases where incorrect data or documents were submitted to obtain ownership rights.
Penalties also include failure to disclose regulatory changes, providing misleading information to obtain approvals, obstructing the work of inspectors, or failing to rectify violations within the specified timeframe, with stricter penalties imposed in the event of a repeat violation.
The Council of Ministers approved the executive regulations for the Non-Saudi Real Estate Ownership Law last June, while the law officially entered into force on January 22, 2026, as part of a regulatory framework aimed at regulating real estate ownership by non-Saudis and enhancing governance and transparency in the Saudi real estate market.
To view the text of the executive regulations for the Non-Saudi Real Estate Ownership Law. Click here
