Updated law on non-Saudis’ property ownership comes into effect today

The updated law regulating property ownership by non-Saudis in the Kingdom comes into force today, Jan. 1, following approval by the Saudi Cabinet in July 2025.

The updated law aims to regulate non-Saudis’ ownership of real estate and the acquisition of real property rights within the Kingdom, in accordance with specific controls and designated geographic zones, under the supervision of the Real Estate General Authority (REGA).

The law allows non-Saudis to own property or acquire other real rights in the Kingdom within a geographic scope determined and under REGA. This includes defining the types of real rights, maximum ownership ratios, permitted durations for usufruct rights, as well as other ownership-related controls.

The law also permits a non-Saudi natural person legally residing in the Kingdom to own one residential property for personal use outside the designated geographic zones, with the exception of Makkah and Madinah, where ownership is restricted to Muslim natural persons only.

In addition, the law allows non-listed companies established under the Saudi Companies Law, in which non-Saudis hold ownership stakes, to own property or acquire other real rights in accordance with prescribed regulations. This includes properties required for conducting business activities and housing employees, as specified in the implementing regulations.

The law clarifies that property ownership or acquisition of real rights by non-Saudis does not grant any additional rights or privileges, nor does it affect other applicable laws that may grant non-Saudis more favorable rights.

The law further requires that ownership be registered with the competent authority and the real estate registry, and imposes a fee not exceeding 5% of the value of the real rights transaction.

In the event of a violation—without prejudice to any harsher penalty stipulated under other laws—violators may face a warning or a fine of up to SAR 10 million.