Saudi Arabia has formally published the full text of a sweeping new law governing real estate ownership by non-Saudis, signaling a major evolution in the country’s approach to property rights for foreigners and foreign entities. The legislation, which received cabinet approval earlier this month, was released in the Umm Al Qura official gazette on Friday, July 25, and is set to come into effect 180 days from publication. This move marks a significant pivot in Saudi policy, redefining how non-Saudis can acquire, hold, and use real estate across designated zones while preserving existing rights and introducing new regulatory safeguards. For investors, residents, and corporate actors, the law outlines a framework designed to facilitate clearer ownership structures and more predictable investment conditions, while also reinforcing state oversight and ensuring alignment with broader economic and development objectives.
Overview of the new foreign real estate ownership framework
The recently published law represents a fundamental reorientation of Saudi Arabia’s real estate policy toward foreigners and non-Saudi-owned entities. At its core, the statute authorizes non-Saudis—including individuals, corporate entities, and non-profit organizations—to own property or hold other “real rights” within zones that will be designated by the Council of Ministers. These rights encompass usufruct (the beneficial use of property), various forms of leaseholds, and other related interests, each subject to geographic boundaries and usage-based restrictions that will be specified in subsequent regulatory measures. Importantly, the legislation also makes explicit that all legal property rights held by non-Saudis prior to the law’s enactment will continue to be protected, ensuring continuity for existing arrangements and easing the transition for current foreign owners.
Despite this broad liberalization, the law maintains policy controls around ownership in the country’s most sensitive urban and religious centers. For the holy cities of Makkah and Madinah—the two cities of utmost religious significance—a continued prohibition on private ownership remains, with narrow exceptions potentially available only under specific conditions for individual Muslim owners. The law does, however, recognize that foreign individuals who are legally resident in the Kingdom may own a single residential property located outside the restricted zones and intended for personal housing purposes. This combination of liberalized rights with geographic and demographic restrictions is designed to balance openness with cultural, religious, and security considerations central to Saudi policy.
A central and procedural pillar of the framework is that the Council of Ministers, acting on recommendations from the Real Estate General Authority and with approval from the Council of Economic and Development Affairs, will designate the zones where foreign ownership is permissible. These zones will also specify ownership ceilings and the duration of usufruct rights, creating a structured map for investors to plan projects, acquisitions, and long-term holdings. Additionally, the law contemplates a pathway for foreign-owned non-listed companies, licensed investment funds, and special-purpose entities to acquire real estate throughout the Kingdom, including within Makkah and Madinah, provided that the ownership serves operational needs or is designated for employee housing. For listed companies and investment vehicles, ownership will be allowed in alignment with Saudi financial regulations, ensuring coherence with the broader financial market framework.
Diplomatic missions and international organizations are explicitly afforded the right to own property for official use, subject to approval from the Foreign Ministry and reciprocity terms. This provision underscores Saudi Arabia’s commitment to facilitating official operations and hosting international bodies while maintaining reciprocal arrangements that reflect bilateral relationships and international norms.
Registering ownership and real rights is a mandatory step, designed to ensure traceability and enforceability. Non-Saudi entities must register with the appropriate authorities before acquiring real estate, and legal ownership or rights will only be recognized once registration is completed in the national real estate registry. The regime also introduces a real estate transfer fee of up to 5 percent on transactions involving non-Saudis, reinforcing the state’s revenue collection and oversight mechanisms, while providing a framework for tax and fee administration within real estate markets.
The enforcement architecture is anchored by a dedicated committee under the Real Estate General Authority, tasked with monitoring violations and imposing sanctions as needed. Affected parties will have the right to appeal committee decisions to administrative courts within 60 days, providing a recourse mechanism for disputes and ensuring due process in the application of the law’s provisions.
Finally, the law revamps the older framework by repealing a previous ban on real estate ownership by Gulf Cooperation Council (GCC) citizens in Makkah and Madinah, thereby unifying the ownership regime for all non-Saudi individuals and entities under a single, coherent legal standard. Executable regulations, including detailed geographic boundaries and implementation procedures, are expected to be issued within six months, enabling a transition from high-level policy to operational rules. This new framework replaces the earlier foreign ownership regime established under Royal Decree No. M/15 issued in 2000, marking a clear departure from two decades of policy.
Who can own and what rights are granted to non-Saudis
The law’s design centers on expanding ownership possibilities for non-Saudis while ensuring that certain strategic considerations and regulatory safeguards remain in place. Non-Saudis—encompassing individuals, corporate entities, and non-profit organizations—are now empowered to own property or to hold other real rights, contingent upon the location and use of the property as defined by the designated zones. The concept of “real rights” extends beyond mere ownership to include usufruct rights, leaseholds, and related property interests. The scope and nature of these rights will be further detailed in implementing regulations, yet the foundational intention is clear: non-Saudis may access long-term or strategic rights to land and structures in specified parts of the Kingdom, subject to governance rules that ensure national interests, security, and urban planning goals.
A critical element of this framework is the designation of permissible zones by the Council of Ministers. The zones will not only demarcate geographic boundaries but will also determine the scale and duration of ownership or usufruct rights that foreign buyers can hold. Importantly, the zones will define caps on ownership percentages, aligning with broader objectives such as market stability, housing availability, and urban development priorities. The law stresses that zones and use-case restrictions will be set in consultation with high-level authorities, ensuring that the rights granted align with economic development plans, housing policies, and strategic sectors identified by the government.
In addition to geographic and ownership constraints, the law recognizes that pre-existing rights held by non-Saudis are safeguarded. This means that individuals and entities with property rights established before the law’s effective date retain those rights under the terms applicable at the time of their creation. Such protection is essential to provide legal certainty for foreign investors and residents who entered into agreements prior to the new regime, reducing the risk of retroactive disruption and facilitating continuity in ongoing projects or leases.
The scope of rights granted, while broad, remains bounded by usage-based restrictions. These restrictions are likely to address responsible ownership, land use compatibility with urban planning, environmental considerations, and compliance with zoning rules. The framework aims to ensure that foreign ownership contributes to the Kingdom’s development goals while minimizing potential distortions in land markets or unintended consequences in local housing supply and infrastructure planning.
The law also contemplates a structured approach to the recognition and enforcement of rights across different ownership forms. For non-Saudi individuals and entities, there is a clear expectation that ownership or real rights will be recognized only upon proper registration, establishing a transparent and traceable chain of title. This approach reduces ambiguity in transactions and supports risk management for lenders, investors, and regulatory authorities. In practice, this will require meticulous due diligence, precise documentation, and timely registration in the national real estate registry, reinforcing the rule of law in cross-border real estate activities.
From a market perspective, the combination of zone-based permissions, rights to usufruct and lease, and the protection of pre-existing rights creates a nuanced landscape for foreign buyers. Foreign investors will need to carefully map the permissible zones, understand the specific rights available in each zone, and tailor their strategies to comply with both national policy objectives and local municipal plans. The law’s structure is designed to provide clarity, reduce uncertainty, and facilitate long-term investment thinking by foreigners who seek to participate in Saudi Arabia’s dynamic real estate markets.
Restrictions in the holy cities and the residence-based ownership carve-out
Even as the law opens new doors for foreign ownership in designated zones, it preserves tight controls over the holy cities of Makkah and Madinah, reflecting the country’s religious, cultural, and social priorities. Ownership of real estate in these sacred urban areas remains prohibited, with exceptions that are narrowly tailored to individual Muslim owners under specific conditions. This approach preserves the religious and cultural restrictions historically associated with these cities while still acknowledging the possibility of certain ownership arrangements when aligned with religious considerations and regulatory safeguards.
A more permissive stance exists for foreign residents who wish to own residential property outside the restricted zones. The law allows foreign individuals who legally reside in Saudi Arabia to own a single residential property beyond the restricted zones for personal housing purposes. This limited allowance is designed to meet the housing needs of long-term foreign residents, encouraging stable living arrangements while avoiding distortions in urban housing markets or the creation of oversupply in sensitive urban areas. It also signals a measured approach to integration, balancing the interests of foreign workers and expatriates with national housing strategies and urban planning constraints.
The holy city restrictions serve as a anchor to maintain social and religious harmony, while the zones designated for foreign ownership will be carefully mapped to align with infrastructure, public services, and urban growth plans. The policy choice here reflects a broader governance philosophy: openness to international investment and human capital, coupled with protective measures to ensure that sensitive areas remain dedicated to their religious and cultural purposes.
Zoning, governance, and the designation process
A cornerstone of the new framework is the process by which zones are designated and governed. The Council of Ministers holds the ultimate authority to designate the zones where foreign ownership is permissible, but this authority operates on a collaborative basis with the Real Estate General Authority (REG A) and with oversight from the Council of Economic and Development Affairs. This tri-partite governance structure ensures that the designation of zones takes into account macroeconomic objectives, housing stock considerations, urban planning requirements, and the Kingdom’s broader economic diversification strategy.
The Real Estate General Authority plays a pivotal technical role in shaping policy implementation. It provides expert recommendations on which zones should be opened to foreign ownership, the permissible ownership percentages, and the duration of usufruct rights within each zone. These recommendations are then weighed by the Council of Ministers, and with input from the Council of Economic and Development Affairs, final approval is granted. The process is designed to balance liberalization with prudent management, ensuring that liberalization does not outpace capacity in housing, infrastructure, or public services.
Once zones are designated, they will be accompanied by implementation rules that detail spatial boundaries, permitted uses, and the procedures for obtaining rights. The zones will also specify performance-based criteria, such as the length of usufructs and the percentage of ownership that can be held by foreign entities or individuals. The implementation framework will likely demand periodic reviews to adapt to market dynamics, regulatory changes, and evolving development priorities. This dynamic approach helps ensure that foreign ownership remains aligned with Saudi Arabia’s strategic interests and that regulatory controls can respond to market signals.
In addition to zonal designations, the law contemplates a separation of processes for different ownership forms. For example, foreign-owned non-listed companies, investment funds, and SPVs may acquire real estate across the Kingdom, including within Makkah and Madinah, given that such acquisitions are justified by operational needs or employee housing. The rules governing these entities will be harmonized with broader Saudi financial regulations, ensuring coherence between real estate ownership and the financial markets, corporate governance standards, and investment protections. Listed companies and investment vehicles, benefiting from established market frameworks, will be allowed to own property in line with financial regulations, reducing regulatory friction for publicly traded entities seeking to optimize real estate holdings for corporate or strategic purposes.
Diplomatic missions and international organizations are also covered by the governance framework, with rights to own property for official use subject to Foreign Ministry approval and reciprocity. This alignment highlights Saudi Arabia’s openness to international cooperation and its willingness to provide appropriate spaces for diplomatic functions and international collaboration, while ensuring that such ownership is consistent with national security, foreign policy priorities, and reciprocal arrangements that reflect bilateral and multilateral relationships.
Corporate ownership and investment vehicles: how foreign entities can hold real estate
The new regime accommodates foreign-owned entities, including non-listed companies, licensed investment funds, and special-purpose vehicles, to acquire property across the Kingdom. This openness extends to properties within the holy cities of Makkah and Madinah, provided that ownership serves operational needs or is dedicated to employee housing. This is a notable departure from broader restrictions in the past, reflecting a policy shift toward enabling corporate investment and operational flexibility for foreign entities.
For listed companies and other investment vehicles, ownership is permitted in accordance with Saudi financial regulations. This alignment ensures that publicly traded entities can manage real estate holdings consistent with securities laws, disclosure requirements, and corporate governance norms. It also provides a more predictable environment for institutional investors, private equity, and other financial actors seeking to leverage Saudi real estate for strategic purposes, whether for expansion, diversification, or workforce housing portfolios.
The regulatory framework for corporate ownership will require robust compliance programs, especially around shareholding structures and related-party arrangements. Given the potential for complex cross-border ownership chains, corporate entities will need to maintain transparent registries, verify beneficial ownership, and ensure that all rights and interests are properly documented in the national real estate registry. The emphasis on registration and oversight is intended to reduce opacity and bolster enforcement capacity.
From a market perspective, allowing foreign-owned companies to acquire real estate for operational needs and employee housing can help diversify ownership, attract international tenants, and support the growth of sectors like hospitality, logistics, manufacturing, and technology that rely on real estate assets. It also supports long-term planning for multinational corporations, who require stable facilities and predictable property regimes to optimize cost structures and service delivery within the Kingdom.
Diplomatic missions, international organizations, and official use rights
The law explicitly contemplates ownership rights for diplomatic missions and international organizations, enabling them to acquire property for official use. This is subject to approval by the Foreign Ministry and reciprocity rules, reflecting a careful balance between facilitating international cooperation and protecting national sovereignty and security concerns. The provision recognizes the practical realities of international diplomacy, including the need for embassies, consulates, cultural offices, and international organizational offices to operate with secure, dedicated spaces, while ensuring that such arrangements do not distort market dynamics or undermine national policy priorities.
For foreign missions and international organizations, the ownership pathway emphasizes transparency, accountability, and alignment with both international practice and Saudi regulatory standards. The requirement for reciprocity ensures that Saudi authorities maintain a predictable and reciprocal approach with partner states and international bodies. In practice, this means that agreements to host foreign diplomatic or organizational properties will be evaluated within a framework that considers security, strategic interests, and the potential impact on local communities and land use.
This provision also signals Saudi Arabia’s intent to enhance its role as a hub for international diplomacy and cooperation, making it easier for foreign governments and multinational institutions to operate within the Kingdom. By providing a clear legal pathway for diplomatic real estate, the law supports the functionality of embassies, consulates, and international organizations, while ensuring compliance with national laws and oversight regimes that govern property ownership, taxation, and regulatory compliance.
Registration, transfer fees, and enforcement mechanisms
A fundamental feature of the new framework is mandatory registration of real property interests by non-Saudi entities. Ownership and legal rights will only be recognized upon registration in the national real estate registry, ensuring a centralized, verifiable record of who holds title or other real rights. This requirement creates a robust backbone for property transactions, reduces the risk of disputes, and provides a transparent basis for enforcement actions if needed. Registration is a critical step for legal recognition and for the validity of any subsequent transfer, lease, usufruct arrangement, or other real rights involving foreigners.
To reinforce compliance and fund regulatory activities, the law introduces a real estate transfer fee of up to 5 percent for transactions involving non-Saudis. This fee structure is designed to monetize the transfer process, support administrative costs, and contribute to public revenue while reinforcing the administrative process required for foreign-owned transactions. The presence of a fee cap also provides predictability for buyers and sellers when negotiating prices and structuring deals.
Enforcement provisions are designed to guard against irregularities, including fraudulent document use and misrepresentation in transaction processes. Violations can carry substantial penalties, with fines potentially reaching up to SAR 10 million in severe cases. In addition to fines, penalties may include forced sales in scenarios where there is evidence of falsified documents or other serious non-compliance. The proceeds from any such forced sales are to be transferred to the state after necessary deductions, reinforcing the government’s ability to recoup funds and apply them toward public priorities. This combination of registration requirements, transfer fees, and stringent penalties creates a deterrent effect that promotes compliance and integrity in foreign real estate transactions.
To ensure due process and proportional justice, the law establishes a disciplinary and monitoring framework under a committee created within the Real Estate General Authority. This committee will be responsible for monitoring violations, imposing sanctions as warranted, and overseeing compliance with the new rules. Should affected parties wish to challenge committee decisions, they may appeal to administrative courts within 60 days, providing a clear, time-bound mechanism for dispute resolution. The appeals channel ensures that the enforcement regime remains balanced and that individuals and entities have a path to rectify perceived injustices or administrative errors.
Repeal of GCC ownership restrictions and unification of the framework
A notable development within the law is the repeal of the previous ban on real estate ownership by GCC citizens in Makkah and Madinah. This change aligns GCC ownership rules with the broader, unified framework governing non-Saudi real estate ownership, thereby removing a long-standing exception and extending a single set of standards to all non-Saudi owners. The unification simplifies administration, reduces regulatory fragmentation, and provides a predictable regime for GCC nationals and other foreign buyers alike. The policy shift reflects Saudi Arabia’s broader trend toward harmonizing treatment of foreign ownership across the Kingdom, promoting consistency and reducing legal complexity in cross-border investments.
The removal of GCC-specific restrictions is designed to encourage foreign investment and foster a more integrated real estate market. It signals confidence in the Kingdom’s property market governance, while ensuring that the same principles, rules, and oversight mechanisms apply regardless of a buyer’s country of origin, provided the parties meet the designated zone requirements and regulatory criteria. This alignment underscores the government’s intent to attract capital, support urban development, and reinforce market transparency through a standardized legal framework.
Executive regulations, geographic boundaries, and detailed implementation procedures are expected to be issued within six months of the law’s enactment. These regulations will translate high-level policy into practical rules that govern zoning, registration, transfer processes, and the administration of penalties. They will also define how zones will be designed, how ownership caps will be applied, and what documentation will be required to establish rights. The six-month window offers a transitional period for market participants to adjust, plan, and comply with the new regime, while providing the government time to finalize the regulatory apparatus necessary for operational enforcement.
Finally, the law replaces the previous foreign ownership regime established under Royal Decree No. M/15 in 2000. This marks a meaningful shift away from the older framework toward a modernized, scalable regime that better accommodates foreign investment, global business practices, and Saudi Arabia’s role in the global economy. The replacement signals confidence in the Kingdom’s legal infrastructure and its capacity to support an evolving real estate market that can attract international capital, talent, and partnerships while maintaining rigorous regulatory oversight.
Implementation timeline, regulatory framework, and readiness
The law is scheduled to come into effect 180 days after its publication in the official gazette, providing a concrete timeframe for government agencies to prepare, publish implementing regulations, and for market participants to adapt. The six-month window for executive regulations is a crucial transitional phase that will allow the Real Estate General Authority and other regulatory bodies to translate the policy into actionable procedures, forms, and processes. This period will cover the drafting of zonal maps, the establishment of registration protocols, and the development of enforcement and dispute resolution mechanisms.
In the interim, government agencies are expected to coordinate closely to align administrative processes with the new framework. This alignment includes training for officials, the development of digital registration platforms, and the establishment of transparent oversight mechanisms that can support foreign buyers in navigating the new regime. The readiness phase is essential to reduce transaction friction, ensure consistent application across regions, and provide a stable environment for both domestic and international investors.
The new law’s replacement of the 2000 framework reflects a broader modernization of Saudi Arabia’s real estate governance, aligning with economic diversification initiatives and the Kingdom’s broader Vision plans. The regulatory architecture is designed to integrate with existing financial regulations, corporate governance norms, and the oversight capacity of the Saudi authorities responsible for land, urban planning, and property markets. The implementation approach emphasizes clarity, predictability, and procedural fairness, enabling investors to plan with confidence while ensuring that regulatory goals—such as housing supply, urban sustainability, and market integrity—are advanced in parallel.
As implementation proceeds, market participants can anticipate a gradual shift in the real estate landscape. Lawful foreign ownership in designated zones could stimulate new developments, particularly in sectors like hospitality, industrial parks, logistics hubs, office campuses, and housing complexes designed to attract international talent. The framework also supports the deployment of employee housing projects by foreign-owned entities, potentially expanding the Kingdom’s ability to attract skilled labor necessary for its growth initiatives. In sum, the phased rollout is designed to balance openness with prudent governance, ensuring that Saudi Arabia’s real estate sector evolves in a controlled, sustainable, and globally coherent manner.
Implications for investors, developers, and the broader economy
The introduction of a comprehensive foreign ownership regime is poised to reshape the Saudi real estate market and broader economy in several meaningful ways. For investors, the clarity of the zones, the defined rights (including usufruct and leasehold options), and the centralized registration regime can enhance risk management, enable longer investment horizons, and improve the efficiency of cross-border transactions. The ability for foreign-owned entities to acquire real estate for operational purposes or for employee housing creates new capital deployment opportunities, particularly for multinational companies expanding their regional footprints or establishing regional hubs in the Kingdom.
Developers may respond to the new regulatory environment by aligning their project pipelines with the designated zones, government housing objectives, and the demand dynamics of foreign tenants and residents. The framework’s emphasis on zone-specific limits and usufruct durations will require careful market segmentation, pricing strategies, and project design that captures value while conforming to regulatory constraints. This could lead to more targeted, mixed-use developments that combine commercial spaces with long-term housing solutions, particularly in major urban centers and transport corridors where foreign workers and international staff clusters are likely to concentrate.
From a macroeconomic perspective, the law’s pricing, zoning, and transfer fee provisions will influence real estate supply and transaction flows. The transfer fee creates a revenue stream for the state and acts as a regulatory instrument potentially affecting deal structures and financing models. The emphasis on registration and oversight reduces information asymmetries, increases market transparency, and can positively affect financing terms for foreign buyers seeking loans or equity financing. Over time, this framework could support more robust foreign investment inflows, diversify ownership structures, and contribute to the Kingdom’s broader goals of sustainable growth, urban development, and economic diversification.
The policy will also require close monitoring of potential risks. These include the possibility of price distortions if zones are too permissive, the risk of market segmentation between designated zones and restricted areas, and the need to ensure that the introduction of non-Saudi ownership does not inadvertently affect affordable housing supply or urban infrastructure capacity. Regulators will need to balance openness with prudent stewardship of land resources, ensuring that growth benefits the national economy while preserving social, cultural, and environmental priorities.
Practical steps for prospective buyers and current holders
Prospective buyers and current holders of non-Saudi real estate interests can begin preparing for the transition to the new regime with a structured, proactive approach. Key steps include:
- Monitor official releases on zone designations and regulatory timelines. Investors should identify which zones will be open to foreign ownership and the specific rights available in each zone (ownership, usufruct, leaseholds, etc.).
- Prepare documentation for registration in the national real estate registry. Since lawful recognition of rights requires registration, parties should assemble title deeds, contracts, corporate documents, proof of residency or business authorization, and any prior ownership arrangements to ensure a smooth registration process.
- Engage with legal and compliance professionals specializing in Saudi real estate and foreign ownership. Given the complexity of the framework, external counsel can provide guidance on structuring ownership, ensuring compliance with corporate governance standards, and navigating the registration process.
- Plan for zone-specific ownership caps and usufruct durations. Investors should map project timelines to the regulatory window and design ownership structures that maximize long-term value within permitted limits. This may involve product differentiation, such as combining owner-occupied units with leased or usufruct-based components.
- Consider tax and fee implications. The 5 percent transfer fee for non-Saudi transactions should be integrated into transaction modeling, along with ongoing costs associated with property ownership, maintenance, and services within the designated zones.
- Prepare for enforcement and dispute resolution. Understanding the appeals process to administrative courts and the role of the Real Estate General Authority committee will help buyers and holders plan for potential disputes and implement robust governance requirements to minimize risk.
Current holders and investors should review their portfolios to assess how existing rights and arrangements fit within the new framework. They may need to re-register or adjust documentation to align with the centralized registry and the designated zones, ensuring continued recognition and enforcement of their real rights. In addition, they should actively monitor the regulatory environment for updates on executive regulations, geographic boundaries, and implementation procedures, which will translate policy into practical rules for day-to-day operations.
Historical context and comparisons with earlier regimes
Historically, Saudi Arabia’s approach to foreign real estate ownership has evolved through several phases, culminating in a structured framework in the current law. The earlier regime, established under Royal Decree No. M/15 in 2000, imposed more restrictive and fragmented rules, with fewer explicit zones and more limited pathways for foreign ownership. The new law represents a decisive modernization, consolidating disparate rules into a unified framework that clarifies permissible activities, rights, and processes for foreign buyers and entities.
The repeal of the GCC-specific prohibition in Makkah and Madinah marks a notable departure from earlier policy where regional exceptions could complicate cross-border investment and regulatory compliance. The consolidation of rules across the Kingdom reflects a strategic intent to attract international capital while maintaining control through a deterministic, rule-based system. The introduction of a centralized real estate registry, a standardized transfer fee, and a dedicated enforcement committee underscores a move toward greater governance efficiency, transparency, and accountability—qualities often highlighted in Saudi Arabia’s broader reforms aimed at improving ease of doing business and investor confidence.
Potential future developments and watchpoints
Several developments could shape the trajectory of foreign real estate ownership in Saudi Arabia in the coming years. First, the implementation of executive regulations within six months will be critical for operational clarity. The precise geographic boundaries of zones, the specific ownership caps, and the duration of usufruct rights will determine how aggressively foreign buyers participate in the market. Close attention should be paid to how zones are mapped to major urban centers such as Riyadh, Jeddah, Dammam, and other fast-growing hubs, as well as to any new urban development corridors or special economic zones that may unlock additional opportunities.
Second, regulatory alignment with broader economic and urban planning goals will influence how the market responds. The interplay between real estate policy, housing supply, infrastructure investment, and labor market dynamics will be pivotal. If zones are designed to promote large-scale housing and mixed-use development, we could see accelerated project pipelines and more sophisticated financing arrangements, including public-private partnerships and international financing instruments.
Third, the approach to enforcement and dispute resolution will shape risk management for foreign buyers. The 60-day window for appeals provides a defined path for recourse, but market participants will also seek greater predictability through clear guidelines and standardized procedures. The health of the real estate market will depend on how consistently and transparently the enforcement regime is applied across regions and over time.
Fourth, diplomatic and international collaboration could influence the pace of foreign investment. The ownership of property by diplomatic missions and international organizations—while carefully regulated—may contribute to a more dynamic cross-border ecosystem, attracting related services, professional expertise, and ancillary businesses that support international operations and collaboration in the Kingdom.
Fifth, technology-enabled processes, including digital registration, e-signatures, and data protection measures, are likely to play a central role in implementing the new regime. A modern, digitized registry will improve efficiency, reduce processing times, and enhance data integrity, making compliance more straightforward for foreign buyers and facilitating smoother transactions.
In sum, the law sets the stage for a period of transformation in Saudi Arabia’s real estate market. It creates a clear, predictable framework for foreign ownership while preserving essential safeguards and tying ownership to the Kingdom’s strategic objectives. The next six to 12 months will be critical as regulations are issued, zones are finalized, and market participants adapt to the new regime. As implementation unfolds, observers will watch for how the framework translates into real-world investment activity, housing outcomes, and broader economic diversification gains.
Conclusion
Saudi Arabia’s new law on real estate ownership by non-Saudis establishes a comprehensive, zone-based framework designed to attract foreign investment while preserving national interests and social considerations. By authorizing non-Saudis to own property or hold other real rights within designated zones, subject to predefined ownership caps and usufruct durations, the law provides clarity and predictability for investors, developers, and corporate entities. The protection of pre-existing rights, the continuation of ownership restrictions in the holy cities, and the allowance for foreign residents to own a single residential property outside restricted zones reflect a balanced approach that harmonizes openness with careful regulatory oversight. The introduction of mandatory registration, a real estate transfer fee, and an enforcement committee, along with a structured dispute resolution path, reinforces accountability and governance in foreign real estate transactions. The repeal of GCC-specific ownership restrictions, the unification of the regulatory framework, and the commitment to issue executive regulations within six months signal Saudi Arabia’s determination to modernize its real estate market, align with broader economic reforms, and position the Kingdom as a competitive destination for international investment.
Investors, developers, and foreign entities should prepare for this transition by monitoring regulatory updates, aligning strategies with designated zones, organizing robust registration and documentation protocols, and engaging professional counsel to navigate the new regime. The coming months will reveal the practical contours of the policy, the efficiency of implementation, and the extent to which foreign ownership will catalyze new development, enhance housing and infrastructure delivery, and support Saudi Arabia’s broader ambitions for sustainable growth and economic diversification. As the regulatory framework takes shape, it will be essential to maintain a vigilant focus on compliance, market dynamics, and the evolving balance between openness and control that defines Saudi Arabia’s evolving real estate landscape.
