General features of the updated system for non-Saudi property ownership
Initial Introductory Bulletin
30 Muharram 1447 AH
July 25, 2025
Modernizing Non-Saudi Property Ownership: A new step to stimulate investment
The real estate sector is one of the main drivers of the national economy because of its role in influencing more than 120 economic activities, as well as its role in enabling families to own suitable housing and providing job opportunities, and its importance increases in light of urban expansion, population growth, and the ambitious vision that the Kingdom seeks to achieve.In the context of the Saudi Vision 2030, the real estate sector is one of the main drivers of the national economy. <In the context of Saudi Vision 2030, which aims to diversify sources of income and reduce dependence on oil, the trend came to develop regulations and legislations that promote investment in the economic sectors in general and real estate in particular, especially with the investment and real estate attractiveness that the Kingdom enjoys today at the level of the region and the world in general, whether in major cities or in the qualitative projects that resulted from the vision such as “Neom”, ”Qiddiya”, ”Red Sea Projects” and others, due to the economic, social and organizational stability characterized by the Kingdom of Saudi Arabia by the grace of God and then the directives of the wise leadership - may God protect them. During the past five years, more than 20 real estate legislations have been issued to govern the real estate sector, preserve the rights of all those dealing in it, and stimulate local and international investment in it, and today comes the modernization of the system of ownership of real estate by non-Saudis as a deliberate regulatory step that ensures the achievement of its regulatory and investment objectives and takes into account the interest of the citizen through specific controls and ranges for ownership.
More than 20 real estate legislations aimed at governing the real estate sector, preserving the rights of all those involved in it, and stimulating local and international investment in it.
Definition of the updated system for the ownership of real estate by non-Saudis
The Non-Saudi Property Ownership System is one of the regulatory legislations for the ownership of real estate in the Kingdom of Saudi Arabia by non-Saudi individuals, companies and entities according to specific controls and criteria that ensure that the availability of ownership is compatible with the national interest and the economic and organizational directions of the Kingdom and takes into account its religious, cultural and social specificity.The Non-Saudi Property Ownership System was previously issued. <a href="https://amlak.net.The System of Ownership and Investment of Real Estate by Non-Saudis was issued on the first of Muharram 1421 AH corresponding to April 6, 2000 AD, and on Monday, the Royal Decree No. (M/14) dated 19 Muharram 1447 AH corresponding to July 14, 2025 AD was issued, approving the updated system of ownership of real estate by non-Saudis. It included 15 articles that precisely regulate the cases of ownership of real estate for non-Saudis, followed by an executive regulation that explains and interprets these articles, in addition to the geographical ranges in which ownership is allowed according to the system.
<The system was updated according to an integrated legislative methodology that included Reviewing relevant real estate laws and legislation, analyzing international practices in a number of countries whose investment environment is similar to the Kingdom, benchmarking with similar systems in G20 countries and countries with an advanced regulatory structure, taking advantage of regulatory practices in controlling geographical zones, market governance, legal empowerment mechanisms for non-Saudi investors, and integration with complementary systems such as the privileged residency system and ownership systems for Gulf citizens.
The system has been updated according to an integrated legislative methodology that included. This system is aligned with international best practices in the field of foreign ownership of real estate to ensure a fair, safe and balanced investment environment in line with the objectives of Saudi Vision 2030.
This system comes in line with international best practices in the field of foreign ownership of real estate to ensure the promotion of a fair, safe and balanced investment environment in line with the objectives of Saudi Vision 2030.
The updated system, new opportunities for citizens in the real estate market
The system has been prepared taking into account that it does not affect the citizen's opportunities for ownership and housing or its impact on the price balance in the real estate market, as the system and its executive regulations include controls and determinants of ownership that work to create a more flexible, stable and diversified market in which opportunities are available to all and resources are managed within a comprehensive national development plan, as the system contributes to:1. Increase real estate supply and achieve real estate balance: The system contributes to increasing the supply of real estate in general and residential real estate in particular, thus reducing the gap between supply and demand, which leads to limiting price inflation resulting from the lack of supply, and the system is integrated with government measures taken to achieve real estate balance for real estate prices, especially in major cities in the medium and long term.
2. Raise the quality of real estate projects: The entry of international developers and quality companies will enhance the trend towards improving design, implementation, and services, raising the level of real estate products in the local market and increasing competition for quality and appropriate price.
3. Stimulating growth in the real estate market: The impact of the system is not limited to residential properties only, but extends to all types of commercial, industrial and tourism properties, which stimulates the economic movement and serves the targets of economic cities and major projects.
4. Providing job opportunities and developing the local real estate sector: With the implementation of new real estate projects expected after the system comes into effect, the demand for real estate brokerage, contracting, construction, valuation, facilities management, property management, property management, law, real estate and engineering consultancy activities will increase, leading to the creation of direct and indirect job opportunities in the real estate, construction, building and other sectors related to real estate activities.
The impact extends to all types of commercial, industrial and tourist properties, which stimulates economic movement and serves the objectives of economic cities and major projects.
Objectives of the Non-Saudis Ownership System:
attract foreign direct investment to the Saudi real estate market.
Enhance the contribution of the real estate sector to GDP.
Retain global talent by enabling them to settle down.
Increase the contribution of non-oil sectors in supporting the national economy.
Grow the economy and diversify sources of income sustainably.
Improve the quality of urban and urban life.
The Five Principles of the Non-Saudi Property Ownership System:
To ensure the effectiveness of the system, achieve its objectives and maximize its impact on the real estate sector, it was built on five main principles:
Sovereignty: The state retains full sovereignty in determining the geographical scope, types of in-kind rights, and ownership percentages, to emphasize that ownership is not an end in itself, but a means to support the economy, stimulate urban development, and achieve added economic and developmental value.
Transparency: The system promotes transparency by requiring real estate registration, full disclosure, and penalties for any manipulation of information or values, which preserves investor confidence, ensures market fairness, and prevents any irregular practices. The system also includes the ability to enhance transparency by clarifying all provisions, articles and procedures through a unified digital platform for real estate transactions.
Citizen priority: The system is based on making ownership available to non-Saudis, individuals, companies and entities, within clear controls that take into account the public interest, preserve the religious and cultural specificity of Saudi society, and ensure the priority of the citizen and the stability of the local market.
Preservation of rights: The system guarantees the preservation of rights for all parties through direct linkage to the real estate registration system, documenting ownership and real rights, and minimizing disputes. It also defines clear mechanisms for subsequent real estate transactions and enables the documentation of all rights to enhance reliability in the real estate market.
Governance: The system defines clear responsibilities for the regulatory authorities, and the effectiveness of regulatory integration between related systems, while granting powers to judicial bodies and specialized committees to consider violations and objections, and authorized the concerned authorities to issue executive regulations and decisions, to ensure fair and consistent application with the variables of the real estate market, and the executive regulations will include all the details of the procedures and the beneficiary's journey in all its details in an effort to make the system a unique experience in line with the progress reached by the Kingdom of Saudi Arabia in all fields.
The <a href="https://amlak.net.The updated system for the ownership of real estate by non-Saudis contains 15 articles, where the system clarified the basic definitions, organized the legal and substantive framework for the ownership of non-Saudis and the acquisition of rights in kind on real estate in the Kingdom of Saudi Arabia by non-Saudis individuals, whether resident or non-resident, non-Saudi companies or non-Saudi non-profit entities, and specified who is entitled to ownership from those categories, and referred the determination of geographical ranges that include the types of rights in kind and others The law also included provisions for owning real estate in the holy cities of Makkah and Medina, clarified the provisions of ownership for companies whose capital is jointly owned by non-Saudis, and emphasized that no additional privileges should be granted to non-Saudis when owning real estate. It also linked ownership to registration in the real estate registry to preserve rights, imposed fees on real estate transactions, and specified violations, penalties and fines, including measures taken when misleading data is provided. It also established specialized committees to look into violations and regulated judicial objection procedures.
System: Meaning: The Non-Saudis Ownership of Real Estate Law issued by Royal Decree No. (M/14) dated 19 Muharram 1447 AH corresponding to July 14, 2025 AD, which is the legal text that regulates the cases, conditions and controls for the ownership of real estate by non-Saudis.
Regulations: The executive regulation of the system, which is the regulation that interprets the provisions of the system, and includes the applied details and technical and regulatory procedures for the activation of the system, and will be published in the ”survey” platform within the next 180 days, then the General Authority for Real Estate will submit it and issue a subsequent decision by the Council of Ministers. _COPY
Authority: Meaning: The General Authority for Real Estate, which is the governmental body overseeing the regulation of the real estate sector.
Geographic Ranges: The specific area or space within the territory of the Kingdom of Saudi Arabia in which a non-Saudi may own real estate or acquire other rights in kind over it, and includes sites and projects stipulated in the geographic scopes document as a range for non-Saudi ownership. Geographic Scopes.
Real Estate Registration: It is a real estate registration system that relies on the real estate unit as the basis for registering ownership, rights and subsequent real estate transactions, by issuing a title deed and a sheet in the real estate registry for each property in the declared real estate areas, indicating the property number, the name of its owner, its description in terms of its type, location, area, boundaries, dimensions, rights, restrictions, obligations, dispositions or changes that result in rights for third parties. Non-Saudi: It means anyone who does not hold Saudi nationality, and includes:
1. Non-Saudi natural person (resident and non-resident)
Non-Saudi Real Estate Ownership System Geographic Ranges Document: Non-Saudis own real estate.
1. The right of ownership, which is a right of ownership over the property. 2.
Full disclosure of all the data and information required by the system and described in the executive regulations.15 articles collect the main regulations for non-Saudi ownership of real estate:
Key Definitions in the Non-Saudi Property Ownership Law:
Land Registry: A set of documents indicating the description of the property, its location, its physical and legal condition, its rights and obligations, and the amendments thereto, in the light of the documents recognized by the law.
First: A natural person who is a non-Saudi individual (whether resident or non-resident).
Secondly: A non-Saudi company is any company that is not considered Saudi according to the Companies Law, with its headquarters outside the Kingdom.
Third: A non-Saudi non-profit entity such as international associations and organizations or foreign non-profit institutions.
Fourth: Any other legal person, determined by the Council of Ministers by decision, and granted the right of ownership in accordance with the Law.Categories allowed to own property according to the new update of the system:
2. Non-Saudi companies (with or without a presence in the Kingdom)
3.
3. Foreign non-profit entities.
3.
4. International representations and bodies (subject to reciprocity and approval by the Ministry of Foreign Affairs).
5. Saudi companies whose capital is jointly owned by non-Saudis.
6. Companies, funds or special purpose organizations whose capital is jointly owned by non-Saudis.
6.
Locations and scopes of ownership for non-Saudis:
In accordance with the law, the Council of Ministers determines the geographical scope in which ownership is allowed, and the General Real Estate Authority will publish the scope document, which will include the in-kind rights that may be acquired and the maximum ownership percentages.
Riyadh and Jeddah: Ownership will be available within specific areas and according to a studied methodology in a way that does not affect the real estate balance in them.
Mecca and Medina: Ownership is prohibited except under special conditions for Muslims or in accordance with specific regulations.Matrix for Non-Saudis Owning Real Estate:
The Public Authority for Real Estate will publish the geographical scopes document for non-Saudi ownership after its approval by the Council of Ministers, including ownership scopes in Riyadh, Jeddah, Mecca, Medina and all cities and provinces of the Kingdom, and contains maps of specific locations, including details of the permitted percentages, types of acquired rights, grace periods and controls related to the ownership or acquisition of in-kind rights by non-Saudis.Forms of ownership available to non-Saudis according to the system and geographical ranges:
2. Other in rem rights such as usufruct, easement, etc.Requirements for non-Saudis:
The property to be owned must be registered in the Real Estate Registry.
Fees and fines for non-Saudis owning real estate:
<The system includes the main features of the fees that will be detailed in the executive regulations, the most important of which are contained in the system:
Fees and taxes totaling 10% include: Real estate transaction tax and a fee for real estate transactions on non-Saudis.
Financial penalties for violating the regulations up to 10 million riyals for violations, and auctioning the property in case of ownership with misleading information.
Harmonization of the system with other systems:
The updated system is harmonized with the provisions of the Privileged Residency Law and the Regulation of Ownership of Real Estate by GCC citizens in Member States for the purpose of housing and investment or other applicable laws that grant non-Saudis privileges to own real estate and acquire other rights in kind, and repeals the previous system of 1421 AH.The updated system is in line with the provisions of the Privileged Residency Law.
Differences between the updated system and related regulations:
13 government entities are involved in the governance and organization of system enforcement and policy implementation:
To ensure the implementation of the system, monitor the application of its policy and ensure the achievement of its objectives, a supervisory committee for the ownership of real estate by non-Saudis was formed consisting of 13 government agencies that started their duties with the announcement of the system, and will work to monitor the progress of the system, submit performance reports and study the relevant recommendations in proportion to any variables or developments, and the supervisory committee consists of:
1. Public Authority for Real Estate
2. Ministry of Investment
3. Ministry of Justice
4. Ministry of Interior
5. Ministry of Municipalities and Housing
6. Ministry of Environment, Water and Agriculture
7. Ministry of Industry and Mineral Resources
8. Royal Commission for Makkah and Holy Sites
9. Medina Area Development Authority
10. Cities and Special Economic Zones Authority
11. Zakat, Tax and Customs Authority
12. General Authority for Statistics
13. Saudi Central Bank
Date of application of non-Saudis owning real estate - updated:
According to the stipulations of the system, the application will start 180 days after its publication in the Official Gazette, and based on the date of publication in the Official Gazette (Umm Al-Qura), the system will be effective in January 2026, and the executive regulations will be issued within the same period to clarify the mechanisms and procedures.
Regulations will be issued within the same period to clarify the mechanisms and procedures.
