Ministry of Municipalities and Housing said that the system comes as an extension of real estate legislation aimed at developing the real estate sector and enhancing its attractiveness to foreign direct investment. The Ministry explained that the updated system took into account the national interests through clear mechanisms to control the market and ensure compliance with the procedures that aim to maintain the real estate balance, and took into account all economic and investment aspects, in order to enhance stability and protect the rights of all parties.
The updated system will allow real estate to be sold to investors and real estate development companies, which supports the efforts to diversify the national economy and increase the contribution of the real estate sector to the GDP. The system will allow non-Saudis to own real estate within specific geographical ranges, especially in the cities of Riyadh and Jeddah, with special requirements for real estate ownership in the regions of Makkah and Medina due to their religious and social sensitivity.
The General Authority for Real Estate will be responsible for controlling the market and ensuring compliance with the measures aimed at maintaining the real estate balance. The General Real Estate Authority will be tasked with proposing the geographical ranges in which non-Saudis are allowed to own real estate or acquire in-kind rights over it, provided that the executive regulations of the system will be put on the "Consultation" platform within a period not exceeding 180 days from the date of publication of the system in the Official Gazette, to allow the opportunity to receive feedback from various segments of society.
The system will become effective. The system will become officially effective in January 2026. The executive regulations will include procedures for non-Saudis to acquire in-kind rights to real estate, requirements for enforcing the provisions of the system, as well as details on the application of the system to take into account all economic and social aspects.
The Ministry emphasized that the new system is in harmony with the provisions of the privileged residence system, as well as with the regulation of ownership of real estate by GCC nationals within member states for residential or investment purposes, in addition to its compatibility with other applicable laws that allow foreigners to own real estate or acquire rights in kind over it.
This update comes in line with other applicable laws that allow foreigners to own real estate or acquire rights in kind over it. This update comes in the context of Saudi Arabia's efforts to create an advanced real estate investment environment, while maintaining social and economic balance, and ensuring that foreign ownership does not affect the ability of citizens to own property, through clear and responsible regulation that takes into account the supreme national interest.
