Saudi Arabia is set to introduce new rules for non Saudis to own only registered properties from January 2026.
The updated rules will allow individuals, companies, and non profit entities to buy registered properties in designated zones across Riyadh, Jeddah, Makkah, and Madinah.
The rules aim to promote transparency, boost investment growth, and provide clearer regulations for foreign ownership.
Introducing New Foreign Property Ownership Rules
As Saudi Arabia prepares to implement new regulations regarding property ownership for non-Saudis, significant changes are forthcoming.
The Real Estate General Authority (REGA) has outlined a framework that will govern how foreign individuals and entities can acquire real estate within the Kingdom.
Set to take effect in January 2026, these regulations aim to clarify the rights and responsibilities of non-Saudis in the Saudi property market.
Overview of the New Law
The updated Law of Real Estate Ownership by Non-Saudis, approved in July, introduces a structured approach to foreign ownership of real estate.
This law is designed to ensure that non-Saudis can own only properties that are registered, thereby enhancing transparency and accountability in real estate transactions.
Key Features of the Law
- Eligibility Criteria: The law specifies five categories of non-Saudis who are permitted to own property:
- Foreign individuals
- Foreign companies
- Saudi companies with foreign shareholders
- Non-profit organizations
- Diplomatic missions
- Disclosure Requirements: Non-Saudis are required to provide comprehensive information and documentation as mandated by the regulations. This requirement aims to prevent fraudulent activities and ensure that all transactions are legitimate.
- Fees and Taxes: A total of 10% in fees and taxes will be imposed on foreign property ownership. This includes real estate transaction taxes and other associated fees, which are intended to regulate the market and generate revenue for the government.
- Penalties for Violations: The law outlines severe penalties for non-compliance. Violators could face fines of up to SAR 10 million, and properties acquired through the use of misleading information may be subject to public auction.
Geographic Restrictions on Ownership
One of the most significant aspects of the new regulations is the establishment of designated geographic zones where non-Saudis are permitted to own property. This approach aims to effectively control and manage foreign investment in the real estate sector.
Designated Zones
REGA is expected to release detailed maps outlining the specific areas where non-Saudis can purchase property. These maps will cover major cities such as:
Ownership Percentages and Types of Rights
The forthcoming guidelines will specify permissible ownership percentages and the types of property rights available to non-Saudis. This information will be crucial for foreign investors looking to navigate the Saudi real estate market.
Purpose of the New Regulations
The introduction of these regulations serves multiple purposes, primarily aimed at fostering a more organized and transparent real estate market in Saudi Arabia.
Enhancing Transparency
By requiring non-Saudis to disclose their information and adhere to strict regulations, the government aims to enhance transparency in property transactions. This move is expected to foster trust among both local and foreign investors.
Regulating Foreign Investment
The new law is also a strategic effort to regulate foreign investment in the Kingdom. By limiting ownership to registered properties and designated zones, the government can better manage the influx of foreign capital and its impact on the local economy.
Implications for Non-Saudis
The new regulations will have significant implications for non-Saudis looking to invest in Saudi real estate. Understanding these changes is essential for making informed decisions.
Investment Opportunities
Despite the restrictions, the new law opens up various investment opportunities for non-Saudis. Foreign individuals and companies can still acquire property for residential or business purposes within the designated zones.
Compliance and Legal Considerations
Non-Saudis must be diligent in complying with the new regulations. This includes understanding the documentation required, the fees involved, and the potential penalties for non-compliance. Engaging with legal experts familiar with Saudi real estate law can be beneficial.
The Role of the Real Estate General Authority
The Real Estate General Authority plays a pivotal role in implementing and overseeing the new regulations. Their responsibilities include:
Publishing Guidelines
REGA will soon publish comprehensive guidelines that detail the procedures for non-Saudis wishing to acquire property. This will include information on application processes, required documentation, and timelines.
Monitoring Compliance
The authority will also be responsible for monitoring compliance with the new regulations. This includes conducting audits and investigations into potential violations to ensure that the real estate market operates fairly and transparently.
Transforming Saudi Real Estate Landscape
The upcoming regulations on property ownership for non-Saudis in Saudi Arabia mark a significant shift in the real estate landscape. By allowing only registered properties and imposing strict disclosure requirements, the government aims to create a more transparent and regulated market.
As the implementation date approaches, non-Saudis must stay informed and prepared to navigate these changes effectively.
Planned Real Estate Projects in Riyadh
Dar Global and Mouawad’s Villa Project
Dar Global, an international real estate developer, has partnered with luxury jeweler Mouawad to unveil a $235 Million Villa Project in North Riyadh, close to the World Expo 2030 site.
The development will include 200 exquisite villas, similar to the prestigious Bulgari Residences, and aims to boost Riyadh’s reputation as a top luxury destination.
Scheduled for completion in 2026, this project represents Dar Global’s debut in Saudi Arabia and Mouawad’s entry into the real estate market.
The Avenues Riyadh
The highly anticipated Avenues Riyadh project, valued at $4.58 billion, has reached 44.5% completion and is scheduled to open in early 2026.
Situated in northern Riyadh, this iconic development, inspired by Salmani architecture, will cover 390,000 square meters and host one of the Middle East’s largest malls.
It will also feature three luxury hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad. This project supports Saudi Vision 2030’s goal of making Saudi Arabia a leading global tourist destination.
New Murabba
The most recent video demonstrates significant advancements in the construction of the New Murabba, the largest contemporary downtown in northwest Riyadh.
A remarkable 5 million cubic tonnes of soil have already been removed, and the project is making notable headway.
This ambitious venture covers an area of 19 square kilometers and will include the distinctive cube-shaped Mukaab at its heart, capable of holding 20 Empire State Buildings.
Elie Saab Branded Residences
Dar Al Arkan, a prominent real estate company in Saudi Arabia, has recently introduced the inaugural Elie Saab Branded Residences in Riyadh.
These residences, known as Etoile by Elie Saab, are situated within the SEDRA community in northern Riyadh, in close proximity to King Khalid International Airport.
SEDRA stands out as one of Riyadh’s highly sought-after developments, spanning an expansive 20 million square kilometers.
It is an integral part of the ROSHN Giga project, fully owned by the Public Investment Fund (PIF). ROSHN has a strategic goal of increasing the homeownership rate among Saudi citizens to 70% by the year 2030.
With these transformative projects, Riyadh, one of the world’s top 15 fastest-growing cities, is transforming into a city known for its accessibility and quality of life to become among the world’s top 10 cities with an investment of $1 trillion over the next seven years.
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