The General Authority for Real Estate announced that The Non-Saudis Ownership System will enter into force and start applying its provisions within the system of real estate legislation regulating the real estate market in the Kingdom, starting from today 3 Sha'ban 1447 AH corresponding to January 22, 2026 AD.

The General Authority for Real Estate (GAR) has announced the entry into force of The Non-Saudis Ownership System. According to the law, a non-Saudi natural resident in the Kingdom is allowed to own one property intended for housing outside the specified geographical areas, with a clear exception for the cities of Mecca and Medina, where the owner of the property must be a Muslim of natural status.

According to the law, a non-Saudi natural resident in the Kingdom is allowed to own one property intended for housing outside the specified geographical areas, with a clear exception for the cities of Mecca and Medina.

Ownership of unlisted companies

As for companies that are not listed on the Saudi Stock Exchange, established in accordance with the Saudi Companies Law, and owned by individuals or entities that do not hold Saudi nationality, they are allowed to own real estate or acquire rights in kind within the geographical area that includes Mecca and Medina, in order to conduct their activities or provide housing for their employees, whether inside or outside this area.

On the other hand, companies that are not listed on the Saudi Stock Exchange and are established in accordance with the Saudi Companies Law are allowed to own real estate or acquire rights in kind over it.

Ownership of listed companies

With regard to companies listed on the Saudi Stock Exchange, in addition to investment funds and licensed special purpose entities, the law grants these entities the full right to own real estate and acquire in-kind rights over real estate in the Kingdom, including Mecca and Medina, in accordance with the regulations of the Capital Market and its executive regulations, and in coordination with the Real Estate Authority and the concerned authorities.

With regard to companies listed on the Saudi Stock Exchange, in addition to investment funds and licensed special purpose entities. <The law emphasizes that the ownership of real estate by non-Saudis does not grant them any additional rights or privileges other than those legally specified for the owner of the right in kind. The law also authorizes diplomatic representations accredited in the Kingdom to own their official headquarters and the residences of their heads and members, and international and regional bodies can own their headquarters in accordance with the applicable agreements, provided they obtain the approval of the Ministry of Foreign Affairs. To ensure the regulation of ownership, the law requires non-Saudi companies and non-profit or non-Saudi entities to register with the competent authorities before owning or acquiring real estate rights, with the validity of ownership after registration in the real estate registry in accordance with the organized laws.

<The system sets fees not exceeding 5% of the value of the real estate transaction carried out by a non-Saudi, while imposing strict penalties up to a warning or a fine not exceeding 5% of the value of the violating real estate right, with a maximum of 10 million riyals, on those who violate the provisions of the system or regulations. The law established a specialized committee to consider violations and impose penalties, with the possibility of objecting to the committee's decisions before the Administrative Court within 60 days of notification. The system warns against providing false or misleading information to obtain illegal ownership of the property, with fines and penalties up to the sale of the violated real estate right, with the proceeds of the sale returned to the owner of the violation after deducting fines, fees and taxes.

The system established a specialized committee to consider violations and impose penalties, with the possibility of appealing the committee's decisions to the administrative court within 60 days of notification. The Public Prosecution is responsible for investigation and prosecution, and the competent court is responsible for examining violations and issuing penalties, with a clear mechanism to compensate the legal right holder in case the court rules to sell the property.