Saudi Arabia’s Updated Law on Real Estate Ownership by Non-Saudis: What You Need to Know (Effective 2026)

  • July 25, 2025

Saudi Arabia is entering a new chapter in real estate investment. In line with Vision 2030, the Kingdom has officially issued an updated Law of Real Estate Ownership by Non-Saudis, creating a clearer, more structured framework for foreign individuals, companies, and investors seeking to own property in the Kingdom.

This article breaks down what’s changing, who is eligible, where ownership is allowed, and what this means for buyers and investors ahead of the law’s January 2026 implementation.

What Is the Updated Law of Real Estate Ownership by Non-Saudis?

The updated law is a comprehensive regulatory framework governing how non-Saudi individuals, companies, and entities may acquire real estate in Saudi Arabia. It replaces the previous law issued in 2000 and introduces clearer controls that:

  • Protect the public interest

  • Support economic growth and foreign investment

  • Respect Saudi Arabia’s religious, cultural, and social values

The law was approved by Royal Decree No. (M/14) on 14 July 2025 and consists of 15 articles, supported by detailed Implementing Regulations  .

Why Was the Law Updated?

The updated law is designed to support Saudi Arabia’s long-term economic strategy. Key objectives include:

  • Attracting direct foreign investment into real estate

  • Increasing the sector’s contribution to national GDP

  • Supporting non-oil economic diversification

  • Enhancing urban development and quality of life

  • Attracting global talent and long-term residents

Who Can Own Real Estate Under the New Law?

Under the updated framework, ownership may be permitted for:

  • Non-Saudi individuals (residents and non-residents)

  • Non-Saudi companies (operating inside or outside the Kingdom)

  • Non-Saudi non-profit entities

  • International organizations and diplomatic missions (subject to approval)

  • Saudi companies with non-Saudi shareholders

  • Special-purpose vehicles and investment funds with foreign ownership

What Types of Ownership Are Allowed?

Non-Saudis may acquire:

  • Full ownership of property

  • Other in-rem rights, such as usufruct or easement rights

All ownership must comply with the Real Estate Registry and applicable regulations  .

Where Can Non-Saudis Own Property?

Ownership is not open everywhere. Instead, it is governed by a forthcoming Geographical Scope Document, which will define:

  • Approved cities and zones

  • Permitted property types

  • Maximum ownership percentages

  • Duration limits for certain rights

Key points:

  • Riyadh and Jeddah: Ownership permitted in specific, carefully defined areas

  • Makkah and Madinah: Ownership restricted to Muslim individuals and Saudi companies with non-Saudi shareholders, and only within approved zones

The official geographical maps and rules will be published by the Real Estate General Authority (REGA)  .

What Are the Registration and Compliance Requirements?

To own property, non-Saudis must:

  • Ensure the property is in-kind registered in the Real Estate Registry

  • Fully disclose required ownership and identity information

  • Comply with implementing regulations and approval processes

Mandatory registration enhances transparency, reduces disputes, and strengthens legal protection for owners  .

Fees, Taxes, and Penalties

The law introduces a total real estate disposition fee of up to 10%, consisting of:

  • 5% real estate disposition tax

  • An additional fee (up to 5%) specifically applicable to non-Saudis

Penalties for violations may include:

  • Warnings or fines up to SAR 10 million

  • Forced sale of property via public auction in severe cases

When Does the Law Take Effect?

  • The law becomes effective 180 days after publication in the Official Gazette

  • Based on the publication timeline, implementation begins in January 2026

  • Implementing Regulations will be issued within the same timeframe

What This Means for Investors and Buyers

For international investors, the updated law offers:

  • Greater legal clarity and predictability

  • Structured access to Saudi Arabia’s most dynamic cities

  • Stronger protections through mandatory registration

  • Alignment with Vision 2030 growth initiatives

However, success will depend on choosing the right locations, understanding regulatory limits, and working with experienced local advisors.

How Basri Real Estate Can Help

At Basri Real Estate, we help investors and buyers navigate Saudi Arabia’s evolving property landscape with confidence. From regulatory guidance to market insights and compliant transactions, our team is ready to support your real estate strategy ahead of 2026.

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