Saudi arabia real estate law

If you want to invest in real estate abroad, now Saudi Arabia has also joined this list. The Saudi government has allowed foreign nationals and companies to buy property in the country. This change has been made under the 2030 vision, which aims to remove the country's economy from oil dependence.

What does a new law say?

According to this law published in Saudi government gazette Umm al-Kura on 25 July 2025, foreign nationals can now buy property in many areas of the country. This law has been kept in the preparation period of 180 days before the implementation of the law, that is, this law will be effectively applicable from January 2026.

Who will get the exemption to buy property?

1. Foreign resident Those who are legally living in Saudi can buy a residential property in any part except Mecca and Medina. This property should only be for private use.
2. foreign companies Those who are doing business in Saudi can buy property anywhere for employees or office operations.
3. Embassy and international organization If the government gets approval, then they can also take property for their office work.

Mecca and Medina still strictly banned

Buying property in both these holy cities will still continue as before. Non-Muslims will not be allowed to take property here. Muslims will also get ownerships only under special circumstances. The government says that the purpose of these sanctions is to maintain religious and cultural purity.

What option besides ownership?

• Usufruct rights can be used and benefited from property, but will not get ownership.
• The lease agreement allows to take property on less or long time.

Well, if you presented false documents

It will be mandatory to register every foreigner who bought property in the National Real Estate Registry. Transfer will be charged a maximum of 5% fee. If someone presents a false document or violates the law, a fine of up to Rs 1 crore Saudi riyal (about 22 crore rupees) can be imposed. Apart from this, property can also be confiscated.

Foreigners who already own property in Saudi will not be affected by this law. Citizens of Gulf countries (GCC) have now got permission to buy property in Mecca and Medina, which was not before.

Explain that the Saudi government will issue detailed guidelines and process in the next six months. It will be told that in which field foreign citizens can buy property, which documents will be needed and what will be the process. Investors have been advised to keep an eye on these guidelines so that the opportunity can be taken properly.