Saudi Arabia to Unveil Zones for Non-Saudi Property Ownership
The General Authority for Real Estate (REGA) will soon release a detailed document outlining specific areas where non-Saudis can own property, aimed at boosting investment and market balance.
Real EstateProperty OwnershipForeign InvestmentSaudi ArabiaVision 2030Real Estate NewsNov 07, 2025
Under the updated Real Estate Ownership Law for Non-Saudis, which was endorsed in July 2025, ownership will be limited to registered properties. Foreign owners must disclose all required data. The system will take effect in January 2026, 180 days after publication in the Official Gazette.
The revised ownership framework introduces several key features:
- A 10 percent total charge, including real estate transaction tax and related fees.
- Fines up to Saudi Riyals 10 million for violations.
- Public auction for properties acquired through false information.
According to Okaz, five groups will be eligible to own property under the new system:
- Non-Saudi individuals
- Foreign companies
- Saudi companies with foreign shareholders
- Non-profit organizations
- Diplomatic missions
However, ownership and usufruct in Makkah and Madinah are limited to:
- Muslims
- Saudi-owned companies, within zones defined by the upcoming geographical document.
These rules will operate alongside existing regulations such as the Premium Residency System and the GCC Property Ownership Regulation.
To ensure proper implementation, 13 Saudi government bodies will participate through an advisory committee responsible for:
- Supervising enforcement
- Monitoring compliance
- Submitting regular reports and recommendations
REGA stated that the reform is designed to attract foreign investment and strengthen the real estate sector’s contribution to Saudi Arabia’s non-oil economy under Vision 2030. The sector currently supports more than 120 industries, creates jobs, and plays a central role in housing expansion and urban development.
Over the past five years, the Kingdom has enacted over 20 real estate laws to promote transparency, protect ownership rights, and enhance investor confidence. REGA emphasized that the new framework will not affect citizens’ access to housing but will ensure a balanced, competitive, and sustainable property market that supports long-term national growth.
Frequently Asked Questions
When will the new property ownership system take effect?
The new property ownership system for non-Saudis will take effect in January 2026, 180 days after publication in the Official Gazette.
What is the total charge for non-Saudi property ownership?
The total charge for non-Saudi property ownership includes a 10 percent fee, which covers real estate transaction tax and related fees.
Who is eligible to own property under the new system?
Five groups are eligible: non-Saudi individuals, foreign companies, Saudi companies with foreign shareholders, non-profit organizations, and diplomatic missions.
What are the restrictions in Makkah and Madinah?
Ownership and usufruct in Makkah and Madinah are limited to Muslims and Saudi-owned companies within defined zones.
How will the new framework support Vision 2030?
The new framework is designed to attract foreign investment and strengthen the real estate sector, which supports the non-oil economy and long-term national growth under Vision 2030.
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