Skip to main content
Company Law & Governance

Employment, tax and property

Real estate legal services in Saudi Arabia

Short answer

Real estate in Saudi Arabia is regulated by the Real Estate General Authority (REGA), and since 22 January 2026 the Law of Real Estate Ownership by Non-Saudis has set new rules for foreign owners. Al-Fahal Law Firm advises on acquisitions, leases, development and construction contracts, and represents clients in property and construction disputes.

Request a consultation

Updated

Situations we help with

  • You are buying land or a building and need title and zoning checks before paying.
  • Your company is foreign-owned and wants to buy property for its business or staff.
  • A commercial lease needs negotiating, renewing or terminating.
  • A contractor is late, over budget or has stopped work.
  • You are developing an off-plan project and need the sales structure to comply.

What the work covers

  • Due diligence on title, encumbrances and permits
  • Sale and purchase agreements and transfers
  • Ownership by foreign individuals and foreign-owned companies
  • Commercial leases and lease disputes
  • Off-plan sales structures and developer contracts
  • Construction, design and subcontracting contracts
  • Construction claims, delay and payment disputes

Buying property safely

A property transaction should start with checks on the title deed, any mortgages or restrictions, the permitted use and the building permits. Payment should be tied to the registration of the transfer. For off-plan purchases, the developer's licence and the project's escrow arrangements matter as much as the sale contract.

Foreign ownership since January 2026

The new law replaced the previous foreign ownership rules from 2000. In summary:

  • Who: foreign individuals (resident and non-resident), foreign companies and certain other entities.
  • Where: in zones designated by the Council of Ministers on the proposal of REGA; outside those zones, a foreign resident may own one residential property for personal use.
  • Makkah and Madinah: ownership remains restricted, with limited exceptions.
  • Registration: every acquisition must be registered; it is not valid until it is.
  • Penalties: violations can attract fines of up to SAR 10 million and, in some cases, a forced sale.

Construction contracts

Construction disputes usually turn on the contract: how delay is measured, what counts as a variation, and how payment is certified. The firm drafts and reviews construction contracts and represents owners, contractors and subcontractors when projects go wrong.

How a consultation works

  1. 1

    Tell us what you need

    Send a short enquiry or call the office. Describe the matter in general terms — no confidential documents yet.

  2. 2

    Conflict check and call-back

    The firm checks that it can act for you, then contacts you to understand the matter.

  3. 3

    Consultation

    You meet a lawyer in Jeddah or online. You get an initial view of your position and options.

  4. 4

    Scope and fees in writing

    If you instruct the firm, you receive the scope of work and fees in writing before work begins.

Questions clients ask

Can foreigners own property in Saudi Arabia?
Yes, within limits. The Law of Real Estate Ownership by Non-Saudis took effect on 22 January 2026. Non-Saudis can acquire property in zones designated by the authorities, which include parts of Riyadh and Jeddah; foreign residents may own one residential property for personal use outside those zones; and special restrictions apply in Makkah and Madinah. Acquisitions must be registered to be valid.
Is there a tax on property sales?
Most real estate sales are subject to a 5% real estate transaction tax. Under the new law, disposals by non-Saudis may also attract a transfer fee of up to 5% of the property's value.
Who resolves construction disputes?
Depending on the contract, the commercial courts, the general courts or arbitration. Many large construction contracts choose arbitration. The contract's dispute clause and the parties involved decide the forum.

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.

Lawyers who handle this work

A question about your company, a contract or a dispute?

Send a short enquiry and a lawyer from Al-Fahal Law Firm in Jeddah will contact you. Please don't send confidential documents until the firm has confirmed it can act for you.