Saudi ArabiaSaudi Arabia Special
Riyadh and Jeddah: Details of Areas Where Non-Saudis Can Own Real Estate
Saudi Arabia’s real estate ownership system now permits non-Saudis to purchase property in specific areas of Riyadh and Jeddah, while maintaining a balance in the real estate market.
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Key Points
Ownership Restrictions
- Prohibited Areas: Ownership in Makkah and Medina is restricted, with exceptions only for Muslims under specific conditions and regulations.
Geographical Areas
- The General Authority for Real Estate will publish a detailed document outlining:
- Specific areas in Riyadh, Jeddah, Makkah Al-Mukarramah, Madinah Al-Munawwarah, and other cities and governorates.
- Maps indicating permitted ownership areas, percentages, types of rights, grace periods, and controls for non-Saudis.
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Eligible Categories for Ownership
The updated real estate ownership system specifies eligible owners as:
- Non-Saudi natural persons.
- Non-Saudi companies (with or without a presence in the Kingdom).
- Foreign non-profit entities.
- International representations and bodies (with reciprocity and Ministry of Foreign Affairs approval).
- Saudi companies with capital jointly owned by non-Saudis.
- Companies, funds, or special purpose establishments with capital jointly owned by non-Saudis.
Ownership Requirements
- Disclosure: Full disclosure of all data and information is required as per the implementing regulations.
- Registration: Properties must be registered in the Real Estate Registry.
Fees and Penalties
- Tax and Fees: A total fee of 10% is imposed, including:
- Real estate transaction tax.
- Real estate transaction fee for non-Saudis.
- Violations: Fines for regulatory violations can reach up to 10 million riyals, with potential for properties to be sold at public auction if ownership is based on misleading information.
Implementation Timeline
- The provisions of the system will take effect 180 days after publication in the Official Gazette, with implementation starting in January 2026.
- Executive regulations will be issued within the same timeframe to clarify mechanisms and procedures.
This updated system aims to enhance transparency and attract foreign investment while ensuring the integrity of the real estate market in Saudi Arabia.
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