Real Estate Financing for Non-Saudis: Can Foreigners Get a Mortgage After the Ownership Law Entry into Force?

The Law of Non-Saudi Ownership of Real Estate came into effect on January 22, 2026, as announced by the Real Estate General Authority (REGA), and its Executive Regulations were published in the Um Al-Qura official gazette on July 3, 2026. With ownership rules becoming clear, the investor's question shifted from "Am I eligible to buy?" to "How do I finance the purchase?". Therefore, real estate financing for foreigners in Saudi Arabia has become the primary topic to study before signing any contract.

This article covers the regulatory framework governing financing ratios, the pathways available to residents and non-residents, and a mathematical example of the actual cost of purchasing with financing. It then compares these with financing rules in the UAE and identifies cases where a cash purchase is more suitable than borrowing.

What Changed After the Ownership Law Came into Effect in 2026?

The most important point for investors is that the law granted non-Saudis the right to own property, but it did not grant them an absolute right to financing. Lending decisions remain credit decisions made by each bank according to its own policy and the regulations of the Saudi Central Bank (SAMA).

Key milestones of 2026:

• January 22, 2026: The law came into effect, and applications began to be accepted through the "Saudi Properties" portal from residents, non-residents, and non-Saudi companies.
• Resident's right to housing: A legally resident individual may own one property for personal residence outside designated geographical boundaries, while property ownership in Makkah and Al-Madinah is restricted to Muslims.
• July 3, 2026: The Executive Regulations were published, requiring non-residents to obtain a digital ID, a Saudi bank account, and a Saudi mobile number prior to ownership, and stipulating that all payments must be conducted electronically.
• July 2026: SAMA instructed banks to open dedicated accounts for non-residents exclusively for property ownership purposes, without debit/credit cards or joint account capabilities.

To review the detailed procedures following the decision, you can refer to the details on the entry into force of the non-Saudi ownership law and beyond. It is also important to verify the property location via the map of geographic zones permitted for foreign ownership, as banks will not finance a property that cannot be registered in the buyer's name in the first place.

Real Estate Financing Options for Foreigners in Saudi Arabia: Three Pathways

Bank Financing for Residents

This is the clearest pathway so far, built on salary transfers to the financing bank and a credit record with the Saudi Credit Bureau (SIMAH).

For instance, National Commercial Bank (SNB / AlAhli) states on its official portal:

• A down payment between 10% and 30% depending on the client's sector, credit standing, and property type.
• The property's age must not exceed 45 years at the end of the financing tenure.
• The property must be completed (ready for occupancy) and vacant.

According to Bayut KSA, the same bank requires non-Saudis to be between 25 and 60 years old, provide a 30% down payment, and maintain a minimum SIMAH credit score of 590. Additionally, press reports in early 2026 indicated that several banks require a 30% down payment, minimum salaries between 10,000 and 20,000 SAR, and that some stipulate Premium Residency.

Non-Residents: Bank Account Available, Financing Not Guaranteed

The regulations and SAMA circular allowed non-residents to open a Saudi bank account, but the purpose of this account is to execute ownership transactions rather than obtain loans. Brokerage platforms clarify that financing for non-residents is not automatic, and that most advertised products are designed for residents who transfer their salaries.

Practically speaking, two realistic options remain for non-residents: cash purchase or developer payment plans.

Developer Payment Plans in Off-Plan Projects

The off-plan sales regulation obligates developers to open a project-specific escrow account into which buyers' funds are deposited and disbursed to the developer under the supervision of the "Wafi" committee. This setup provides buyers with regulatory protection not offered by unlicensed transactions.

Brokers operating in the market report that the typical structure for these plans is as follows:

• A down payment between 10% and 20%.
• The remainder distributed across construction milestones over 3 to 5 years.
• Often without profit margins.

Additionally, some banks, such as Bank AlJazira, offer programs to finance units in projects supervised by "Wafi", with the necessity of verifying the eligibility of non-Saudis for each program individually.

Regulatory Limits: Loan-to-Value (LTV) Ratio and Debt Burden Ratio (DBR)

SAMA sets a cap on the loan-to-value (LTV) ratio in the Implementing Regulations of the Real Estate Finance Law:

Status	Maximum Financing Ratio
First home for a citizen	90%
Second home and beyond (Banks)	70%
Second home and beyond (Real Estate Finance Companies)	85%

The 90% cap is explicitly restricted to citizens and does not apply to non-Saudis. Therefore, financing for foreigners is subject to each bank's internal policy, which explains the prevalence of the 30% down payment requirement in the market. The original text can be reviewed in the Saudi Central Bank Rulebook.

In addition to the LTV ratio, responsible lending principles set a cap on the Debt Burden Ratio (DBR), which is the ratio of total monthly debt installments to net monthly income:

• Income of 15,000 SAR or less: Total obligations must not exceed 55% of income.
• Income above 15,000 and below 25,000 SAR: Must not exceed 65% of income.

Practically, this cap determines the achievable loan amount even if the down payment is available.

Calculation Example: How Much Cash Does a Resident Investor Need to Buy an Apartment in Riyadh with Financing?

Assumptions: A resident buying an apartment in Riyadh priced at 1,500,000 SAR, with a 30% down payment, a hypothetical Annual Percentage Rate (APR) of 4.5% (within the current market range), and a 25-year tenure. The tenure here is hypothetical and must be confirmed with the bank.

Item	Value (SAR)
Property Price	1,500,000
Down Payment (30%)	450,000
Non-Saudi Disposition Fee in Riyadh (2%)	30,000
Financing Amount	1,050,000
Approximate Monthly Installment	Approx. 5,840
Total Financing Cost over 25 Years	Approx. 700,800

Result: The buyer needs approximately 480,000 SAR in cash at the time of purchase, prior to valuation and administrative bank fees. The 2% disposition fee is restricted to Riyadh, Makkah, Al-Madinah, and Jeddah Governorate, and is zero in all other regions according to Articles 9 and 10 of the Regulations.

Added to this is the Real Estate Transaction Tax (RETT) of 5%, amounting to 75,000 SAR in this example. Statutory responsibility for paying RETT lies with the seller, but price negotiations may practically transfer its burden to the buyer; thus, the contract should explicitly specify who bears it.

Debt Burden Test: If the buyer's monthly income is 19,000 SAR, the installment equals approximately 31% of income, well within the 65% cap applicable to this income bracket, provided there are no other significant financial obligations.

Comparison with Cash Purchase: A cash buyer pays 1,530,000 SAR inclusive of the fee, saving approximately 700,800 SAR in financing costs. On the other hand, a significantly larger amount of capital is tied up in a single asset.

Comparison with Real Estate Financing in the UAE

Criterion	Saudi Arabia	UAE
First Home Financing Cap for Expat	No specific announced cap; 90% cap for citizens only, market standard is 30% down payment	80% up to AED 5 million, 70% above it (CBUAE)
Second Property and Beyond	70% for banks and 85% for financing companies	60% for expats
Off-Plan Property	Developer plans and escrow accounts, limited bank programs	50% cap for all buyers
Non-Resident	Dedicated bank account, financing not guaranteed	Some banks offer up to 60% (e.g., HSBC)
Debt Burden Ratio Cap	55% or 65% depending on income bracket	50% of income
Maximum Tenure	According to bank policy	25 years

In conclusion, the UAE possesses an announced and tested framework for expat and non-resident financing. In contrast, the Saudi market is still in the stage of building dedicated products for non-Saudis. Those comparing the two markets can find complete details in real estate financing conditions in the UAE for non-residents.

When Is a Cash Purchase Better Than Borrowing?

A cash purchase, or a developer payment plan, is the preferable choice in the following cases:

1. The investor is a non-resident: Bank financing opportunities are limited, and attempting to secure financing consumes time without a guaranteed outcome.
2. Net rental yield is lower than financing cost: If the expected yield after vacancy and maintenance is lower than the annual financing rate, every borrowed Riyal reduces profitability.
3. Short holding horizon: Purchase fees and early-year financing costs diminish profit margins upon quick resale.
4. Off-plan property with an interest-free payment plan: Bank borrowing to finance what can be paid in interest-free installments is unjustified.
5. Old property: The requirement that property age must not exceed 45 years at the end of financing may exclude it from bank financing altogether.

On the other hand, financing makes sense for a resident with stable income buying a residence for long-term holding while wishing to retain a portion of their liquidity.

For those whose budget is smaller than purchasing a full unit, the available alternative is real estate investment funds available to foreigners in Saudi Arabia, which allow entry into the market without loans or property management burdens.

Risks and Legal Aspects

• Real estate cover-up (Tasattur): Registering a property under a citizen's name to circumvent restrictions is a void transaction that exposes the party to imprisonment and fines. The official legal pathway via the official portal is the only safe route.
• Misleading information: The annex to the regulations stipulates a fine of 5% of the real property right's value up to a maximum of 10 million SAR, along with the forced sale of the property, for anyone intentionally providing false information.
• Loan dependence on residency and salary: Financing is built on salary transfer, so losing a job or changing residency status leaves the borrower with an ongoing commitment without a local income source.
• Repricing shifts: In variable-rate contracts, monthly installments may rise later; thus, the repricing mechanism and early settlement terms must be fully understood before signing.
• Financial channel: Payments must be executed electronically through official legal channels; cash payments outside banks are not accepted.

For those completing procedural steps after arranging financing, review steps and conditions for foreign property ownership in Saudi Arabia.

Frequently Asked Questions

Can a non-resident foreigner get a mortgage from a Saudi bank?

Not automatically. A non-resident can open a bank account dedicated to property ownership, but financing remains subject to each bank's internal policy, and most advertised products are targeted at residents. The realistic alternative is cash purchase or developer payment plans.

How much down payment is required from a non-Saudi resident?

It ranges between 10% and 30% depending on the bank, client profile, and property type, with 30% being the most common requirement in bank terms for non-Saudis.

Does a non-Saudi benefit from Real Estate Development Fund programs?

No. REDF programs are restricted to eligible citizens, as is the government assumption of RETT for a first home.

What additional fees apply to a non-Saudi buyer?

A 2% fee on the disposition value in Riyadh, Makkah, Al-Madinah, and Jeddah Governorate, and zero in other regions. Added to this is the 5% Real Estate Transaction Tax (RETT), with contract terms determining who bears it.

Which is easier for a foreigner: Financing in Saudi Arabia or in the UAE?

Currently the UAE, as it has established, announced caps for expats (80% for first home up to AED 5 million) and non-resident products at certain banks. The Saudi market is still in the early stages of building products for non-Saudis.

Skyline Holding Recommendations for Investors

• Start by defining your status: Residents should request an initial financing offer from their bank before searching for property, while non-residents should build their plan on cash liquidity or developer payment plans.
• Calculate the full cost: Down payment, 2% fee if the property is in the four cities, RETT, and bank administrative fees.
• Test debt burden: Ensure the new installment plus existing obligations remains within your income bracket cap (55% or 65%).
• Compare yield with financing cost: Do not borrow to buy an investment property whose net rental yield is lower than the annual financing rate.
• In off-plan projects: Require "Wafi" licensing and an active escrow account for the project before paying any amount.
• Request written offers: Publicly quoted percentages are only indicators; written offers are what decisions must be built upon.

Contact the Skyline Holding team to assist you in studying investment opportunities and calculating returns accurately.