The City Law Firm › Property ownership
Saudi Arabia · Non-Saudi Real Estate Ownership Law
Own property in Saudi Arabia, including Madinah, on solid legal ground
Saudi Arabia's new law opens real estate ownership to non-Saudi individuals and companies, whether based in the Kingdom or abroad. The City Law Firm helps you check your eligibility, choose the right route, and complete your purchase lawfully, from the first question to the registered title deed.
Book your welcome meeting Read the law (Arabic)Who may own property?
The Non-Saudi Real Estate Ownership Law, issued by Royal Decree No. (M/14) dated 19 Muharram 1447H, replaced the previous law and sets out who may own property, where, and on what terms. Its Implementing Regulations (the Regulations) were issued by Council of Ministers Resolution No. (43) dated 8 Muharram 1448H.
Individuals
Non-Saudi individuals, whether living in the Kingdom or abroad, may own property or acquire other real rights (such as usufruct or long-term lease rights) within the approved zones.
Residents: your home
A legal resident may also own one home for personal residence outside the zones, except in Makkah and Madinah. A spouse and children under 25 count as one household for this purpose.
Non-Saudi companies and non-profit entities
They must register with the competent authority (for companies, the Ministry of Investment) before acquiring property.
Saudi companies with foreign shareholders
They may own within the zones, including Makkah and Madinah, and may also own what they need for their business and staff housing.
Listed companies and funds
Companies listed on the Saudi Exchange, investment funds and special purpose entities follow rules set by the Capital Market Authority.
Diplomatic missions
Missions may own their official premises and residences on the basis of reciprocity, with the approval of the Ministry of Foreign Affairs.
Owning property in Madinah
In Makkah and Madinah, ownership by individuals is limited by law to Muslims, and only within the approved zones set by the Council of Ministers. In Madinah these are currently designated development projects, such as Rua Al Madinah, Dar Al Hijra and Knowledge Economic City (as at Jumada al-Akhirah 1448H, November 2026).
A resident's right to one home outside the zones does not extend to Makkah or Madinah. Saudi companies with foreign shareholders may own within the approved zones in both cities.
The list of zones and projects is set by Council of Ministers decision and may change. The current list is published on the official Saudi Properties portal of the Real Estate General Authority (REGA): saudiproperties.rega.gov.sa/zones. As part of our engagement, we confirm the status of any specific property before you commit.
What you need before you buy
If you live outside Saudi Arabia, the Regulations require you to have the following in place before acquiring property:
- A Saudi digital identity, issued for property transactions by non-residents.
- A bank account in the Kingdom in your own name. The Saudi Central Bank (SAMA) has added specific account-opening rules for this purpose.
- A Saudi mobile number in your name, linked to your digital identity.
Applications are submitted through the REGA electronic portal, and all payments must be made electronically. Your ownership takes legal effect only once it is registered in the Real Estate Registry, which then issues the title deed.
Fees
The law allows a fee of up to 5% of the transaction value. The Regulations currently set it as follows:
| Location | Fee |
|---|---|
| Riyadh, Makkah, Madinah and Jeddah | 2% of the value, for all types of real rights and uses |
| Elsewhere in the Kingdom | 0% |
Certain transactions are exempt from the fee wherever they take place. These include inheritance divisions, transfers under a final court judgment, and transfers to a company or fund you wholly own. Other taxes and fees prescribed by law may still apply.
Risks to avoid
Giving false or misleading information to obtain ownership is punishable by a fine of up to 5% of the property's value (capped at SAR 10 million) and a court-ordered sale of the property. Other violations carry warnings and fines under a published schedule. Decisions can be challenged before the Administrative Court within 60 days. Owning property does not, by itself, grant residency or any rights beyond those of an owner.
How we help
Eligibility assessment
We confirm whether you, or your company, may own the specific property you have in mind, and on what conditions.
Due diligence
We check the title, the zoning status, the developer's licence and, for off-plan units, the escrow and project safeguards.
Contract review
We review and negotiate the sale or lease contract so that your rights, timelines and remedies are clear.
Registration support
We guide you through the portal, digital identity and banking steps until the title deed is issued.
Structuring for investors
We advise on owning directly or through a Saudi company, including licensing and governance.
Disputes
We represent you before the competent committees and courts if a problem arises.
How it works
Welcome meeting
Our hospitality: a meeting to understand your goal and explain the options, with no charge and no commitment.
Legal consultation
A paid consultation with a clear written opinion on your eligibility, risks and next steps.
Execution
Due diligence, contract, registration and follow-up through to the title deed.
Frequently asked questions
Can I buy property without living in Saudi Arabia?
Yes, within the approved zones. You will first need a Saudi digital identity, a local bank account and a Saudi mobile number in your name.
Can a non-Muslim own property in Madinah?
No. The law limits ownership by individuals in Makkah and Madinah to Muslims, within the approved zones.
Does buying property give me residency?
No. Ownership gives you the rights of an owner only. Residency is a separate track, such as Premium Residency, which we can also advise on.
What does the government fee cost?
Currently 2% of the value in Riyadh, Makkah, Madinah and Jeddah, and 0% elsewhere. The law caps it at 5%, and the rate may change by decision.
Is the law already in force?
Yes. The law was published in the Official Gazette (Umm Al-Qura) in Muharram 1447H and took effect 180 days later. Its Implementing Regulations have also been issued and published.
Saudi hospitality starts with a conversation
In Saudi Arabia, every relationship begins with a welcome. Yours begins with a meeting with our team, by video call or over Arabic coffee at our offices in Madinah or Riyadh. This is our hospitality, so there is no charge and no commitment. If you then choose to work with us, the scope and fees are agreed with you in writing before anything begins.
This page gives general information about the Non-Saudi Real Estate Ownership Law and its Implementing Regulations. It is not legal advice for any particular case and does not guarantee any outcome. The Arabic text published in the Official Gazette (Umm Al-Qura) is the authoritative reference. Zones, fees and procedures may change by official decision. Read the full Arabic text of the law and its Implementing Regulations.