Islamabad, July 26, 2025: In a groundbreaking legal move, Saudi Arabia has enacted a new law allowing foreigners to own and benefit from real estate across the Kingdom, according to the Saudi Gazette. The regulation was published in the Umm Al-Qura Gazette and will be enforced 180 days from publication.
Foreigners Can Now Buy Property — With Conditions
The law opens real estate rights—like ownership, usufruct, and long-term leases—to non-Saudi individuals, companies, and non-profits, provided they meet government conditions. The Council of Ministers will define which areas are open for foreign ownership and what usage is permitted.
Makkah and Madinah Stay Restricted
Despite the expansion, Makkah and Madinah remain restricted. However, Muslim individuals may be allowed to purchase property there under specific conditions. Interestingly, GCC nationals are now permitted to own real estate in these cities, a significant shift from previous policy.
Oversight by Real Estate Authority
The implementation will be monitored by the Real Estate General Authority and other government bodies. Ownership limits, locations, and property types will be determined by the Council.
READ MORE: Foreigners Can Buy Property in Saudi Arabia from Jan 2026
One Residential Unit for Expats
Foreign residents in Saudi Arabia can purchase one residential property for personal use, as long as it’s not in restricted areas. In addition, foreign-owned firms and investment funds can own property anywhere, including the holy cities, if used for operations or housing staff.
Registration & Penalties
All property ownership must be registered, and transfer fees up to 5% apply. Violations can result in fines up to SAR 10 million, or even forced sales.
This reform replaces the 2000 Royal Decree M/15, marking a major step toward attracting global investment into Saudi Arabia’s real estate market.
