Can a foreigner buy property in Saudi Arabia under the new non-Saudi property ownership law?
Yes. The non-Saudi property ownership law, officially the Law of Real Estate Ownership by Non-Saudis (Royal Decree No. M/14 dated 19/01/1447H), has been in force since 22 January 2026 and replaced the 1421H law.
In short: a non-Saudi may own property inside the geographic zones set by the Council of Ministers. A legal resident may also own one home outside those zones, except in Makkah and Madinah, where individual ownership is limited to Muslims. Ownership is valid only once it is registered in the Real Estate Registry.
The Executive Regulations, published in Umm Al-Qura on 3 July 2026, set a REGA fee of 2% in Riyadh, Makkah, Madinah and Jeddah and 0% elsewhere. A real estate lawyer can check your eligibility and the property before you sign.
You can book a consultation on WhatsApp with the team at Al-Safwa Law Firm for Advocacy and Legal Consultations to review your documents and explain your legal options clearly.
Table of Contents
What is the non-Saudi property ownership law?
The non-Saudi property ownership law is the Saudi framework that decides who, other than Saudi citizens, may own real estate or acquire other real rights over it, such as usufruct, and on what conditions. It has 15 articles and is supported by Executive Regulations issued by the Council of Ministers.
The key official references, checked in November 2026, are:
- The law: Law of Real Estate Ownership by Non-Saudis, approved by Royal Decree No. M/14 dated 19/01/1447H (14 July 2025) and Council of Ministers Decision No. 42 dated 13/01/1447H (official text, REGA, Arabic PDF).
- Entry into force: 22 January 2026, 180 days after publication in the Official Gazette (Article 15), as announced by the Real Estate General Authority (REGA).
- Executive Regulations: approved by Council of Ministers Decision No. 43 dated 08/01/1448H and published in Umm Al-Qura on 18/01/1448H (3 July 2026).
- Repealed law: the Law of Real Estate Ownership and Investment by Non-Saudis, Royal Decree No. M/15 dated 17/04/1421H (Article 14).
Property rights that a non-Saudi or a legal entity acquired lawfully before the new law came into force are not affected by it, according to the Royal Decree that issued the law.
Can a foreigner buy property in Saudi Arabia?
Yes, within limits. Under Article 2 of the law, a non-Saudi may own real estate or acquire other real rights inside the geographic zones that the Council of Ministers sets. The same Council decision fixes the types of rights allowed, the maximum foreign ownership percentage in each zone, the maximum usufruct period and any other controls.
REGA shows these zones on interactive maps on the Saudi Properties portal, together with the permitted ownership percentages, rights and durations. Because zones and limits are set by decision and can change, check the map for the exact plot before you commit.
A non-Saudi who lives in the Kingdom legally gets one extra right: owning one property for their own housing outside the zones, except in Makkah and Madinah (Article 2(3)).
Saudi Arabia foreign property ownership: who can own what
Saudi Arabia foreign property ownership rules depend on who the buyer is. The table summarises the law and its Executive Regulations as of November 2026.
| Buyer | Where they can own | Main conditions |
|---|---|---|
| Non-Saudi individual resident (Iqama holder) | Inside the zones, plus one home for personal housing outside them (not in Makkah or Madinah) | Legal residency; apply on the Saudi Properties portal; spouse and children count with the resident for the home outside the zones |
| Non-Saudi individual living abroad | Inside the zones | Digital identity, a Saudi bank account in their name and a Saudi mobile number linked to the digital identity (Regulations, Art. 2) |
| Foreign company | Inside the zones | Registration with the Ministry of Investment (MISA), disclosure of direct and indirect owners, a legal representative holding a Saudi-issued ID and a Saudi bank account (Regulations, Art. 3) |
| Foreign non-profit entity | Inside the zones | Registration with the National Center for Non-Profit Sector, disclosure of controllers, a Saudi bank account (Regulations, Art. 4) |
| Unlisted Saudi company with foreign shareholders | Inside the zones, including Makkah and Madinah; outside the zones only for its activities and staff housing | MISA approval needed only for property outside the zones; Makkah and Madinah are excluded outside the zones (Law Art. 3; Regulations, Art. 8) |
| Listed companies, investment funds, licensed special purpose entities | Across the Kingdom, including Makkah and Madinah | Capital Market Law and rules of the Capital Market Authority (Law Art. 4) |
| Diplomatic missions and international bodies | Official premises and residences | Reciprocity and Ministry of Foreign Affairs approval (Law Art. 7) |
The law does not override the Premium Residency Law, the rules on property ownership by GCC citizens, or any other law that gives non-Saudis better rights (Article 5). Owning property also gives no rights or privileges beyond those of any owner of the right (Article 6), so it does not, by itself, grant residency.
Rules for Makkah and Madinah
For individuals, ownership or other real rights in the cities of Makkah and Madinah are limited to Muslims (Article 2(4)). Unlisted Saudi companies with foreign shareholders may own there inside the zones (Article 3), and listed companies, funds and licensed special purpose entities may own there under the Capital Market Authority rules (Article 4). The single home that a resident may own outside the zones cannot be in either city.
The resident’s single home and family members
Under Article 7 of the Executive Regulations, a resident’s non-Saudi spouse and children count as dependants for the one home outside the zones. None of them may own a separate home on that basis unless the marriage ends or the child reaches 25. Inside the zones, the law does not set a one-property limit for individuals, but the Council of Ministers’ zone controls apply.
How to buy property in Saudi Arabia as a non-Saudi
Every application goes through the Saudi Properties portal run by REGA, which is linked to the Real Estate Registry (Regulations, Art. 6). The general path is:
- Confirm your category: resident, non-resident, foreign company or entity, or Saudi company with foreign shareholders.
- Check the property: use the zone map to confirm that the location and the right you want (ownership or usufruct) are open to your category. REGA also states that the property must be registered in the Real Estate Registry under in-kind registration (REGA Q&A).
- Complete identity and account requirements: these differ by category (see below).
- Submit the request online on the portal with the data and documents it asks for.
- Pay electronically: all payments linked to the purchase or sale must go through electronic payment methods under the Payments and Payment Services Law with the Saudi Central Bank (Regulations, Art. 6(3)).
- Register the right: the transaction is completed and the deed issued in the Real Estate Registry. Ownership is valid only after this registration (Law Art. 8(2)).
The first steps differ by category, according to REGA’s announcement of 22 January 2026:
- Residents: apply directly on the portal using the Iqama number; eligibility is checked electronically.
- Non-residents: start at a Saudi embassy or mission abroad to obtain a digital identity, then open a Saudi bank account and obtain a Saudi mobile number linked to that identity before applying on the portal.
- Foreign companies and entities with no presence in Saudi Arabia: register with MISA through the Invest Saudi platform and obtain a Unified Number (700), then complete the ownership steps online. Setting up a Saudi vehicle instead is a separate decision; see our company formation and registration service.
Before you pay a deposit, have the sale contract reviewed. A clause that ties payment to registration in the Real Estate Registry protects the buyer if the request is refused. Our contract drafting lawyer page explains what this review covers.
Fees under the non-Saudi property ownership law
Article 9 of the law allows REGA to charge a fee of up to 5% of the value of a non-Saudi’s disposition of real rights over property, without prejudice to other fees or taxes. The Executive Regulations then set the actual rate.
The fees below are as published on 3 July 2026 in the Executive Regulations (Arts. 9 and 10, Umm Al-Qura) and checked in November 2026. They may change, so please verify with the official source.
| Location | Type of right and use | REGA fee | Source |
|---|---|---|---|
| Riyadh city, Makkah city, Madinah city, Jeddah governorate | All types of real rights, all uses | 2% of the transaction value | Executive Regulations, Art. 9 |
| Rest of the Kingdom | All types | 0% | Executive Regulations, Art. 10(1) |
Article 10 of the Regulations also applies a zero rate, wherever the property is, to cases including estate division, transactions under a final court judgment, expropriation for public benefit, free transfers to a waqf or a public entity, division of jointly owned property without increasing any share, and a transfer from an individual to a Saudi company or fund that they wholly own.
The REGA fee is not the only cost. Article 9 keeps other legal fees and taxes in place, such as the real estate transaction tax collected by the Zakat, Tax and Customs Authority, so check the current rate on zatca.gov.sa before you budget.
Penalties and legal deadlines
A violation of the law or its Regulations can lead to a warning or a fine of up to 5% of the value of the right, capped at SAR 10 million (Article 10). A REGA committee of at least three legal specialists decides violations (Article 11).
A non-Saudi who knowingly gives false or misleading information that leads to ownership faces the same maximum fine plus a court-ordered sale of the right. The Public Prosecution investigates and the competent court decides (Article 12). If the right is sold, the person receives the lower of the sale proceeds or what they paid, after fines, taxes and sale costs are deducted.
| Deadline | What it applies to | Source |
|---|---|---|
| 15 days | A registered foreign company must notify MISA of a transfer of 5% or more of its ownership, or arrangements that restrict its independence | Regulations, Art. 3(3) |
| 10 to 180 days | Period the committee sets in its decision for correcting a violation | Regulations, Art. 12(2) |
| 60 days | Objection to a committee decision before the Administrative Court, from notification | Law, Art. 11(3) |
| 180 days | A property returned to the non-Saudi who sold it is zero-rated if returned within this period of the first transaction, unchanged | Regulations, Art. 10(6) |
Objections before the Administrative Court are heard within the Board of Grievances system; see our Board of Grievances cases lawyer page.
Why applications stall: common reasons
Most problems trace back to one of the conditions above. The most common ones are:
- The plot is outside the zone for the buyer’s category, or the right sought (full ownership instead of usufruct) is not allowed there.
- The property is not yet registered in the Real Estate Registry, so the right cannot be recorded.
- A resident tries to buy a second home outside the zones, or a spouse or child under 25 applies separately for one.
- A non-resident starts on the portal without a digital identity, a Saudi bank account or a linked Saudi number.
- A foreign company applies before registering with MISA, or does not disclose its indirect owners.
- Payment is made outside electronic channels, for example cash to the seller.
- A non-Muslim individual seeks property in Makkah or Madinah.
Avoid holding property informally in a Saudi person’s name. You would have no registered title, and where a business activity is involved the arrangement may raise commercial concealment issues.
What changed from the old 1421H law
The new non-Saudi property ownership law reorganises foreign ownership around a few clear principles:
- Geographic zones set by the Council of Ministers, with ownership caps, right types and usufruct limits per zone (Article 2).
- Coverage of individuals, resident or not, foreign companies, non-profit entities and other entities the Council may name (Article 1).
- One digital route through the Saudi Properties portal, linked to the Real Estate Registry.
- Validity of ownership tied to registration in the Real Estate Registry (Article 8).
- Specific requirements for non-residents: digital identity, Saudi bank account and Saudi number.
- Special rules for Makkah and Madinah, and for companies and listed entities (Articles 2 to 4).
So assess any purchase under the current law and its Executive Regulations, not under the conditions of the repealed 1421H law. If you inherit property in Saudi Arabia as a non-Saudi, the division of the estate is zero-rated for the REGA fee; our inheritance lawyer page explains the estate steps.
Frequently Asked Questions about the Non-Saudi Property Ownership Law
The non-Saudi property ownership law opens Saudi real estate to foreign buyers through set zones, one digital portal and mandatory registration. For a resident, the main points are the zone map and the one-home rule. Non-residents need the digital identity steps first, and companies need MISA registration. In every case, ownership counts only after registration in the Real Estate Registry.
Your next step is to check the exact property on the zone map and have the contract and your eligibility reviewed before any payment. Our online legal consultations are available if you are outside Jeddah or outside the Kingdom.
To get a legal consultation from our team, contact us via the WhatsApp button at the bottom of the screen.
Read also:
Sources:
- Law of Real Estate Ownership by Non-Saudis, Royal Decree No. M/14 dated 19/01/1447H (REGA, official Arabic text).
- Bureau of Experts at the Council of Ministers: Law of Real Estate Ownership by Non-Saudis.
- Umm Al-Qura: Executive Regulations of the Law of Real Estate Ownership by Non-Saudis (published 3 July 2026, checked November 2026).
- Umm Al-Qura: Council of Ministers Decision No. 43 dated 08/01/1448H approving the Executive Regulations.
- REGA: Non-Saudi Property Ownership System enters into force (22 January 2026).
- REGA: Non-Saudi Real Estate Ownership in Saudi Arabia.
- REGA: Saudi Properties portal, geographic zones map.
- REGA: Q&A about the updated Law of Real Estate Ownership by Non-Saudis (PDF, July 2025).
A legal advisor holding a Bachelor’s degree in Law from the prestigious Cairo University. He possesses extensive experience spanning over 25 years in criminal, civil, and family law, during which he has achieved notable accomplishments that have solidified his reputation as a valuable asset to any legal team
