Key points
- Published on 25 July 2025 and in force since 22 January 2026.
- Ownership is permitted in designated zones, which cover parts of Riyadh and Jeddah.
- A foreign resident may own one residential property for personal use outside the zones.
- Makkah and Madinah remain restricted, with limited exceptions.
- Acquisitions are not valid until registered; violations can attract fines up to SAR 10 million.
Background
The law was published in the official gazette on 25 July 2025 and took effect 180 days later, on 22 January 2026, replacing the Law of Real Estate Ownership and Investment by Non-Saudis from 2000. The Real Estate General Authority (REGA) administers it, and the zones where foreign ownership is permitted are set out in a geographic zones document.
Who can own
"Non-Saudi" is defined broadly: foreign individuals, whether resident or not; foreign companies and other foreign entities; foreign-owned Saudi companies, investment funds and special-purpose vehicles for business purposes and staff housing; and diplomatic missions and international organisations, subject to approval and reciprocity.
Where
- Designated zones. Ownership is permitted in zones set by the authorities, which include areas of Riyadh and Jeddah.
- Outside the zones. A foreign resident may own one residential property for personal use.
- Makkah and Madinah. Ownership is restricted. Limited rights are available to Muslim individuals and to Saudi companies, under conditions set by the regulations.
Registration, fees and penalties
Every acquisition by a non-Saudi must be registered in the real estate registry; until it is registered, the transaction is not valid. A transfer fee of up to 5% may apply to disposals by non-Saudis. Violations can be fined up to SAR 10 million per offence, and property acquired on false information can be ordered sold. Decisions can be appealed to the administrative courts.
Before you buy
Check that the property is in a permitted zone or qualifies under the residential exception, verify the title and any restrictions, confirm the fees and tax that will apply, and make payment conditional on registration.
Questions clients ask
Can a foreigner buy a home in Jeddah?
How do non-Saudis apply to buy property?
Are there extra costs for foreign buyers?
Official sources
Laws change. We cite the official text so you can check the current version.
This page is general information, not legal advice for your situation.