Can Non-Saudis Own Property in Saudi Arabia? The New Ownership Law Explained

For years, owning property in Saudi Arabia as a non-Saudi was possible only in narrow cases, through a slow approval process. That changed with the updated Law of Real Estate Ownership by Non-Saudis, which has been in force since January 2026 and now has its executive regulations and approved geographic zones.

Whether you are a resident expat thinking about a home in Riyadh or a foreign investor looking at the market, this guide explains what the law says and what to check before you buy.

The Timeline in Brief

8 July 2025: The Council of Ministers approved the updated law.
Royal Decree No. (M/14) dated 19/1/1447H: The law was issued, and it was published in the official gazette Umm Al-Qura on 25 July 2025.
22 January 2026: The law entered into force, 180 days after publication, as announced by the Real Estate General Authority (REGA).
23 June 2026: The Council of Ministers approved the executive regulations and the geographic zones where non-Saudis may own property.
3 July 2026: The executive regulations were published in Umm Al-Qura.

The new law repealed the previous law on real estate ownership and investment by non-Saudis, issued by Royal Decree No. (M/15) in 1421H (2000).

Who Can Own Under the New Law?

According to REGA, the law opens ownership, and other real rights such as usufruct, to:

Non-Saudi individuals, whether they live in the Kingdom or not.
Non-Saudi companies and non-profit entities.
Saudi companies with non-Saudi shareholders, and certain investment vehicles with foreign participation.
International missions and organizations, on the basis of reciprocity.

Each category has its own conditions. For individuals, the executive regulations require an electronic identity from the Ministry of Interior, a Saudi bank account in the buyer's own name, and a Saudi contact number. Foreign companies must register with the Ministry of Investment (MISA) and disclose their ownership structure, and foreign non-profits register with the National Center for the Development of the Non-Profit Sector.

Where Can Non-Saudis Buy?

This is the part most people get wrong. The law does not mean a foreigner can buy anywhere they like.

Inside the approved geographic zones

Ownership is permitted within geographic zones approved by the Council of Ministers. The approved zones cover areas in Riyadh and Jeddah, as well as specific zones in Makkah and Madinah under special rules, and other cities and governorates. For each zone, the authorities can set the type of right allowed, ownership percentages, and time limits for usufruct rights.

The official zone map is published on the Saudi Properties platform run by REGA (saudiproperties.rega.gov.sa). Do not rely on a social media post or a seller's word to decide whether a plot is inside a zone. Check the official map.

A resident's home outside the zones

A non-Saudi with legal residency in the Kingdom may also own one residential property for their own housing outside the designated zones. Under the executive regulations, the spouse and children are treated as dependents for this purpose, so in practice the family counts as one unit for that single home.

Makkah and Madinah

The two holy cities have stricter rules. Under the law, ownership there by non-Saudi individuals is limited to Muslims, and only within the specified zones and conditions. Some Saudi companies with foreign shareholders may hold property there for defined purposes. If you are considering either city, read the official rules carefully before making any commitment.

Fees and Taxes You Should Budget For

Here is what has been confirmed by official and reliable sources:

Real Estate Transaction Tax (RETT) of 5%. REGA has confirmed it applies to all property transfers, whether the buyer is Saudi or not.
Non-Saudi disposal fee. The law allows REGA to charge a fee of up to 5% of the property's value on real estate dispositions by non-Saudis. The executive regulations currently set this fee at 2% in Riyadh, Jeddah, Makkah and Madinah, with a zero rate for specific cases such as court-ordered transfers and inheritance distributions.
Brokerage commission, if you work with a broker, as agreed in the written brokerage contract.

Confirm the rate outside these four cities, and how the fee applies to your deal, on the Saudi Properties platform before signing. Rates can be revised.

Registration Is Mandatory

Every right acquired by a non-Saudi must be registered in the Real Estate Registry (in-kind registration) run by REGA. Applications, payments and title issuance go through REGA's electronic platform, and financial transactions must be made through approved electronic payment channels, not cash.

Companies also have ongoing duties. For example, a registered foreign company must notify MISA within 15 days of any change in ownership of 5% or more.

Penalties for Violations

The law is strict on misuse. According to REGA's official Q&A:

General violations range from warnings to fines of up to 5% of the value of the real right, capped at SAR 10 million.
Providing false or misleading information can lead to fines of up to SAR 10 million, and the property may be ordered sold at public auction.

The lesson is simple: buy in your own name, through the official channels, never through a "name lender".

What This Means for Buyers in Riyadh

Riyadh is one of the cities with approved zones, and it is also one of the four cities where the 2% fee currently applies. A few practical points:

Check the plot, not just the neighborhood. Zone boundaries follow the official map, and two plots in the same district may not be treated the same.
Your budget is bigger than the price. On a SAR 2,000,000 property, 5% RETT and a 2% fee alone add up to SAR 140,000, before any commission. Agree in writing who bears each amount.
Land comes with its own rules. Building regulations, land use, and the annual white land fees on large undeveloped plots apply to every owner, Saudi or not.

Practical Steps Before You Buy

Confirm your eligibility on the Saudi Properties platform, based on your category (resident, non-resident, company).
Prepare the basics: electronic identity, a Saudi bank account in your name, and a Saudi phone number.
Check the zone of the specific property on the official map, or confirm it qualifies as your one residence outside the zones.
Verify the title deed and make sure the seller is the owner or holds a valid power of attorney, and that there is no mortgage or legal hold.
Work with a licensed broker who holds a valid FAL license from REGA and signs a written brokerage contract with you.
Complete the transaction and registration through the official platforms, with electronic payment only.

Common Mistakes to Avoid

Assuming the whole city is open. Ownership depends on the approved zones and the specific plot.
Paying a deposit before checking eligibility. Confirm you can register the property first.
Using someone else's name. This exposes you to heavy fines and possible forced sale.
Forgetting the fees. In Riyadh, plan for 5% RETT plus the 2% non-Saudi fee.
Relying on outdated information. The 1421H rules no longer apply, and details are still being updated.
Dealing with unlicensed intermediaries. Always ask for the FAL license number.

Key Takeaways

The updated law has been in force since 22 January 2026, and its executive regulations were published in July 2026.
Non-Saudi individuals, companies and non-profits can own within approved zones, and a legal resident can also own one home outside them.
Makkah and Madinah have special rules, and individual ownership there is limited to Muslims.
Budget for 5% RETT and, in Riyadh, a 2% non-Saudi fee.
Registration in the Real Estate Registry is mandatory, and violations can cost up to SAR 10 million.

If you are eligible and looking for land in Riyadh, send me your request through the find land page and I will share available listings that match your budget and preferred area. And if you own a property and want it marketed, you can reach me through the property marketing page.

This article is general information for awareness and is not legal or tax advice. Regulations, zones and fees may change, so always refer to the Real Estate General Authority (REGA), the Saudi Properties platform, and other official sources before making any decision.