Buy Property in Saudi Arabia as a Foreigner | Ownership Guide

Buy property in Saudi Arabia and tap into one of the fastest-growing real estate markets in the Middle East, offering extensive opportunities for both local and foreign investors across residential, commercial, and industrial sectors. With increasing global interest in the Kingdom, the question of whether foreigners can legally own real estate has become a key concern for anyone planning to enter the Saudi market.

This article provides a comprehensive overview of the legal requirements for foreigners to buy property in Saudi Arabia, highlighting the essential procedures, approved locations, investment conditions.

Learn about : Non saudi ownership law

Requirements for Foreigners to Buy Property in Saudi Arabia for Foreigners

The ownership of residential or commercial real estate by foreigners in the Kingdom of Saudi Arabia is subject to a set of regulatory requirements governed by the laws and regulations regulating non-Saudi property ownership. 

These conditions can be reviewed through the approved Foreign Ownership of Real Estate System, which outlines the legal framework allowing property ownership under specific criteria. Below are the key conditions regulating property ownership by foreigners in the Kingdom:

The property must be located outside the geographical boundaries of the cities of Makkah and Madinah.

The capital value must not be less than the value of the property intended to be purchased, or- preliminary real estate financing approval must be obtained from an accredited financing entity.

The property area must be proportionate to the actual purpose of ownership and limited to the necessary- requirement.

If the property is intended for an industrial establishment, it must be located within one of the officially- approved industrial zones or cities.

–The project must not violate the Foreign Investment Law and regulations applied in the Kingdom.

–A copy of the title deed of the property intended to be owned must be attached to the application.

After the approval decision is issued, the applicant must visit the notary public to complete the legal- procedures within a period not exceeding six months.-

Buying Property in Madinah Saudi Arabia​

Article (5) stipulates that non-Saudis are prohibited from owning real estate located within the boundaries of Makkah Al-Mukarramah and Madinah Al-Munawwarah, despite the general framework that allows foreigners to buy property in Saudi Arabia in other regions of the Kingdom, with inheritance being the only exception to this specific prohibition. 

The Article expressly provides that no non-Saudi individual may, by any means other than inheritance, acquire ownership, usufruct, or any other real right over property situated within the limits of these two cities.

Accordingly, while foreign investors may buy property in Saudi Arabia subject to applicable laws and regulations, such rights do not extend to real estate located in Makkah and Madinah. This restriction applies regardless of the method of acquisition, whether direct ownership, contractual rights, or rights of use and benefit.

However, the Article allows a limited exception whereby ownership may be acquired if it is coupled with the endowment (waqf) of the owned property in accordance with Islamic Shariah rules for the benefit of a specific Saudi entity.

This exception represents a narrowly tailored allowance within the broader regulatory regime governing the ability to buy property in Saudi Arabia, and is subject to the condition that the waqf deed expressly grants the authority responsible for endowments the right of supervision, in accordance with the provisions set out in the implementing regulations.

For the purposes of this Article, the term “non-Saudi” shall include categories of persons and entities that are otherwise permitted, in certain circumstances, to buy property in Saudi Arabia, except where expressly restricted under this Article, as follows:

–Any natural person who does not hold Saudi nationality.

–Any non-Saudi company or legal entity.

Any company established with the participation of a natural person who does not hold Saudi nationality, except for the following:

—Banks and real estate finance companies licensed by the competent Saudi authority.

–companies whose activities do not include dealing in real estate.

Learn : how to start a business in saudi arabia

Can Expat Buy Property in Saudi Arabia

Article (1) of the Law Regulating the Ownership and Investment of Real Estate by Non-Saudis in the Kingdom of Saudi Arabia clarifies can foreigners buy property in Saudi Arabia by allowing a non-Saudi investor, whether a natural person or a legal entity, who is duly licensed to engage in any professional, vocational, or economic activity, to buy property in Saudi Arabia for foreigners when such property is required for carrying out the licensed activity. 

This includes property designated for the investor’s personal residence as well as accommodation for its employees, subject to obtaining the approval of the authority that issued the relevant license.

In this context, the law regulates the process of buying property in Saudi Arabia by foreign investors and further provides that where the license permits the acquisition of land or buildings for the purpose of construction and subsequent investment through sale or lease, the total project cost including land and construction must not be less than SAR 30 million.

Moreover, the legal framework governing buying property in Saudi Arabia requires that the acquired property be invested within a period not exceeding five years from the date of ownership.

Conclusion:

Buy property in Saudi Arabia can be simple if you follow the right guidance. Foreigners can invest in residential, commercial, or industrial projects with proper licensing and approvals. Staying within allowed areas and meeting investment requirements is key. Etqan Law Firm helps investors navigate the process, secure property, and maximize benefits. With their support, investing in Saudi real estate becomes easier, safer, and more confident.

FAQ:

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: ‎+966543104848

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.