The following has been imposed the Executive Regulations for the Non-Saudi Real Estate Ownership System a fee of 2% of the value of any transaction conducted by a non-Saudi regarding real property rights in the cities of Riyadh, Makkah, Madinah, and Jeddah, in a move aimed at regulating real estate transactions within the cities covered by the law.
In the same context, the official newspaper “Umm al-Qura” published details of the executive regulations, which included the requirement for non-Saudi individuals to obtain a digital ID, open a bank account within the Kingdom, and obtain a Saudi contact number linked to the digital ID before proceeding with ownership procedures. As for companies, the regulations require them to register with the Ministry of Investment and disclose their owners and direct and indirect controllers, and to notify the competent authorities of any change in the ownership structure involving 5% or more within 15 days of the date of the change.
Among the most notable provisions of the regulations is the mandate for the General Real Estate Authority to establish a unified electronic portal that allows non-Saudis and companies covered by the system to submit applications for real estate ownership and disposal, provided that the portal is linked to the real estate registry to complete registration procedures and issue deeds in accordance with applicable regulations.
The regulations stipulate that all payments related to real estate ownership or the disposal of real rights must be made exclusively through electronic payment methods approved by the Saudi Central Bank, with all registration, title transfer, and deed issuance procedures completed electronically through the portal and the Real Estate Registry.
The regulations also set forth rules governing the ownership of residential real estate by non-Saudi family members, as non-Saudi spouses and children are considered dependents of the applicant with regard to real estate designated for residential use, and none of them are permitted to own residential property independently unless the marital relationship ends or one of the children reaches the age of twenty-five.
In the same context, the Saudi Central Bank “SAMA” issued instructions to banks operating in the Kingdom to open dedicated bank accounts for individuals and entities covered by the system, enabling them to carry out real estate ownership transactions or acquire rights in rem over such properties, in accordance with approved regulations and procedures.
The Central Bank clarified that opening these accounts requires verifying the customer’s identity through reliable sources, with a prohibition on opening joint accounts or adding authorized representatives from outside the Kingdom. The use of these accounts is limited solely to real estate transactions, and no debit or credit cards may be issued in connection with them.
SAMA also emphasized that all financial transactions related to real estate ownership must be conducted through approved electronic channels or via a licensed broker, and financial institutions are required to continuously update customer data to ensure compliance with regulatory requirements.
