Saudi Arabia to allow non-Saudis to own real estate from January 2026

 

Saudi Arabia is set to implement a new law regulating property ownership by non-Saudis from January 2026, according to an official document Okaz reviewed.

The new law that will come into effect on January 21 will allow non-Saudis to own real estate in Saudi Arabia for commercial, residential, or operational purposes. 

The updated system outlines general rules for foreign ownership, including registration requirements, categories of eligible owners, and associated fees and penalties.

Specific required documents and exact locations where non-Saudis may acquire property have not yet been disclosed and will be published by the Real Estate General Authority (REGA) in due course.

Key details of the new law

• Designated zones: Ownership will be permitted within specific geographical zones determined by the Council of Ministers and the Real Estate General Authority (REGA). These are expected to include major cities like Riyadh and Jeddah.
• Makkah and Madinah: Direct foreign ownership in the holy cities of Makkah and Madinah will remain restricted, though indirect investment may be possible through publicly listed real estate companies on the Saudi stock exchange (Tadawul).
• Foreign residents: Foreign residents in Saudi Arabia with a valid iqama (residency permit) may be allowed to own one residential property for personal use even outside the designated zones, under certain conditions.

• Fees, taxes and penalties: The law introduces financial obligations and penalties to regulate non-Saudi ownership :

1. Fees and taxes: Ownership by non-Saudis will incur 10% in combined fees and taxes, including the real estate transaction tax and administrative fees.
2. Penalties for violations: Fines can reach SR 10 million.
3. Misleading information: Properties acquired using false or misleading data will be sold at public auction.

• Registration: All property ownership or rights must be registered with the Real Estate Registry to be legally valid. The process will be available through platforms like the Najiz Electronic Platform.
• Vision 2030 alignment: This change is part of Saudi Arabia's "Vision 2030" initiative to diversify its economy beyond oil, attract foreign direct investment, and support major development projects. 

According to the document, REGA is expected to soon publish a document detailing the geographical zones in which non-Saudis may own property . This will cover:

• Riyadh, Jeddah, Makkah, Madinah
• All other cities and governorates of Saudi Arabia
• Permitted ownership percentages, types of rights, grace periods, and regulatory procedures

Oversight and implementation will involve 13 government agencies, including an advisory committee to monitor the law’s progress, provide performance reports, and recommend adjustments as necessary.

The system integrates with the Premium Residency System, GCC property ownership rules, and other preferential regulations for investment.

Source: Times of India