Foreign property ownership in Saudi Arabia opens new doors for investment and economic growth for those interested in real estate investment in Saudi Arabia. Thanks to legal reforms facilitating ownership processes, foreigners can now take advantage of promising investment opportunities in the Saudi real estate market. This change enhances the Kingdom's attractiveness as a distinguished investment destination and contributes to diversifying the national economy.

Foreign Property Ownership in Saudi Arabia

In recent years, Saudi Arabia has witnessed increasing interest from foreigners in property ownership. This is due to amendments made to laws and the provision of an attractive investment environment. This trend reflects the development of the Saudi real estate market and offers new opportunities for global investors to benefit from the sustainable economic growth in the Kingdom.

Conditions for Foreign Property Ownership in Saudi Arabia

• The foreign investor needs to obtain approval from the authority that issued the license for professional or economic activity.
• The cost of the real estate investment project must be at least 30 million Riyals, subject to modification by the Council of Ministers.
• Real estate investment for foreigners requires maintaining ownership for a minimum of five years.
• Foreigners are allowed to lease within the boundaries of Mecca and Medina for a maximum of two years, with the possibility of extending the lease once or twice.
• Approval from the Ministry of Interior is required for owning property for private residence, and approval from the Ministry of Foreign Affairs for companies and international entities.

Steps for Foreigners to Own Property in Saudi Arabia

1. Access the government’s Absher platform, where the Saudi Ministry of Interior has simplified the process for obtaining approval to own or purchase property in Saudi Arabia for foreigners by offering the service electronically.
2. Choose the Absher Individuals tab, create a new account on the platform if it's the first time, or log in if you already have an account.
3. Select the "My Services" tab from the main page, then the "General Services" tab, and click on the "Request to Own Property for Non-Saudis" button.
4. A new request form will appear, requiring you to fill in all personal and property details, especially attaching the necessary documents such as:
   • Resident ID number and property deed document.
   • Then click on the "Next" button, followed by "Confirm Request" and "Submit Request" buttons.

Who Can Own Property in Saudi Arabia?

• Individuals who do not hold Saudi citizenship.
• Non-Saudi companies.
• Companies established or participated in by an individual with a natural or legal status who does not hold Saudi citizenship, with exceptions for:
  • Banks and real estate finance companies licensed by the Saudi Central Bank, provided that the ownership of real estate is for financing Saudi nationals, or for their own headquarters or branch offices, or for conducting their activities, according to regulations set by the Saudi Central Bank.
  • Companies listed on the Saudi stock market, according to regulations determined by the Capital Market Authority in coordination with relevant authorities.
  • As determined by the Council of Ministers according to regulations it sets for this purpose.
  • Persons or categories determined by the Council of Ministers or the Prime Minister to be included in this category.

Foreign Investor Property Ownership in Saudi Arabia

A non-Saudi investor, whether an individual or an establishment, licensed to engage in any professional, craft, or economic activity, is permitted to own the necessary property to conduct their activity in Saudi Arabia. This includes property required for their residence and the residence of their employees, subject to the approval of the licensing authority. If the license includes purchasing buildings or lands for establishing investment projects through sale or lease, the total project cost (land and construction) must not be less than 30 million Riyals, and the Council of Ministers may modify this amount. The property must be invested within five years of ownership.

Non-Saudi Entities Owning Property in Saudi Arabia

Foreign entities accredited in the Kingdom based on reciprocity can own official headquarters and residences for their leaders and members. International and regional entities are allowed to own official headquarters according to the agreements regulating them, subject to obtaining a license from the Minister of Foreign Affairs.

Non-Saudi Resident Property Ownership in Saudi Arabia

Non-Saudi investors, whether individuals or licensed entities to engage in any professional, craft, or economic activity, can own the necessary property to conduct their activity in Saudi Arabia. This includes property for personal residence and employee housing, subject to the approval of the licensing authority. If the license includes purchasing buildings or lands to establish facilities and invest them through sale or lease, the total project cost, including land and construction, must exceed 30 million Riyals, with the possibility of modifying this amount by a Council of Ministers' decision. The property must be invested within five years from the date of ownership.

Are There Fees for Transferring Property Ownership to Foreigners in Saudi Arabia?

No fees have been imposed on transferring ownership for foreigners or Saudis, according to the latest laws related to foreign property ownership in Saudi Arabia. Additionally, ownership transfer procedures are completed within an hour, provided all necessary conditions and procedures are met, allowing the Ministry to complete the transfer process.

Are There Fees for Selling Property to Foreigners in Saudi Arabia?

There are fees on real estate transactions for foreigners in the Kingdom, where 10% of the property's value is deducted in favor of the Ministry of Finance when a foreigner buys or sells a property.