Introduction
The updated system for non-Saudi real estate ownership came into effect in the Kingdom of Saudi Arabia on January 22, 2026,establishing a new regulatory framework that allows non-Saudis, including residents and non-residents, as well as non-Saudi companies and entities, to own real estate or acquire other in-kind rights over it according to specific geographic zones and controls.
The system aims to regulate real estate investment, protect transacting parties' rights, increase transparency, and attract investments and expertise to the Saudi market, while preserving the Kingdom's economic, security, social, and religious considerations.
Allowing ownership does not mean that all properties are available to all categories; the right to ownership is tied to the property's location, approved geographic zone, type of real estate right, status of the buyer, purpose of ownership, and the limits and percentages determined by competent authorities. If you are looking for a suitable opportunity, you can review the Properties Page available at Yazan Al-Asiri Real Estate Brokerage Platform.
First: Can a non-resident own real estate in Saudi Arabia?
Yes. The updated system permits a non-Saudi natural person to own real estate in the Kingdom, whether they are:
- A resident inside the Kingdom holding a valid legal residency (Iqama).
- A non-resident who does not hold a Saudi residency.
- A beneficiary of one of the Premium Residency products.
- An investor or owner through a company or entity that meets regulatory requirements.
Thus, legal residency is no longer a general condition for all ownership cases. However, application procedures and identity verification vary according to the individual's status; a resident applies using their residency number (Iqama), while a non-resident needs to obtain an Approved Digital ID enabling them to complete electronic transactions related to real estate ownership.
Second: What is meant by the Digital ID for non-residents?
The Executive Regulations defined the Digital ID as digital data issued and approved by the Ministry of Interior, used to verify the identity of a non-resident non-Saudi person when conducting digital transactions related to property ownership in the Kingdom. This identity is not considered a legal residency, entry visa, work permit, or a substitute for a passport.
Rather, its sole purpose is to identify the non-resident and enable them to use the digital services required to complete the ownership request. The system also dictates that non-Saudi property ownership does not grant additional rights or privileges, other than the legal rights resulting from property ownership.
Third: Requirements for Non-Resident Ownership
A non-Saudi natural person who is not resident in the Kingdom must fulfill the following basic requirements prior to owning real estate:
- Obtaining the approved Digital ID.
- Opening a bank account in their name within the Kingdom.
- Issuing a Saudi contact number in their name and linking it to the Digital ID.
- Creating an account on the 'Saudi Real Estate' portal.
- Selecting a property located within a geographic zone where ownership is permitted.
- Submitting required data, documents, and disclosures.
- Executing financial transactions related to the ownership through official electronic payment methods.
- Completing ownership registration with the Real Estate Registry.
Fourth: Pathway for Residents within the Kingdom
A legally resident non-Saudi can submit an ownership request via the 'Saudi Real Estate' portal using their residency (Iqama) number. A distinction must be made between two cases:
Ownership within approved geographic zones
A resident may own property within the zones determined by the Council of Ministers, according to property type, rights, percentages, and controls specific to each zone. It is inaccurate to state that a resident cannot own more than one property in all cases, because the number of properties and type of rights are subject to the controls of the geographic zone.
Ownership outside geographic zones
The system grants a legally resident non-Saudi natural person the right to own a single property designated for their residence outside approved geographic zones, excluding the cities of Makkah and Madinah.
Fifth: Ownership in Makkah and Madinah
One of the most prominent changes in the updated system is that property ownership in Makkah and Madinah is no longer absolutely prohibited for all non-Saudis. Property ownership or the acquisition of in-kind rights over property in the two Holy Cities for a non-Saudi natural person is restricted to Muslim individuals, and within locations and geographic zones permitted by the system and regulating decisions.
Sixth: Geographic Zones Permitted for Ownership
The system does not automatically allow non-Saudis to purchase any property in any location; rather, ownership depends on the Geographic Zones Document and official maps published on the 'Saudi Real Estate' portal, which define locations, property types, maximum ownership percentage caps, and the duration of usufruct rights, if applicable.
Seventh: Premium Residency Holders
A Premium Residency holder can benefit from the real estate rights designated for the residency product they hold. Among the available products is the 'Property Owner Residency', which is linked to owning or acquiring a usufruct right in residential real estate within the Kingdom with a total value of no less than the threshold approved by the Premium Residency Center.
Eighth: Non-Saudi Companies and Entities
The system permits non-Saudi companies and entities to own property after registering with the Ministry of Investment, disclosing direct and indirect owners, appointing a legal representative, opening a bank account in the Kingdom, and complying with approved zones and controls.
Ninth: Types of Available Real Estate Rights
The Geographic Zones Document may permit acquiring various in-kind rights, such as full ownership rights, usufruct rights, or easement rights. Therefore, the type of right offered in the contract must be accurately verified.
Tenth: In-Kind Registration and Proof of Ownership
The system mandates that the property subject to non-Saudi ownership must be registered in the Real Estate Registry (in-kind registration), and that ownership procedures and title deed issuance must be completed through the Real Estate Registry. Non-Saudi ownership is not legally valid under the system until officially registered.
Eleventh: Property Due Diligence Prior to Purchase
It is recommended to conduct legal and technical due diligence, including verifying the in-kind registration of the property, matching the title deed with physical reality, ensuring the property is free of mortgages or disputes, and confirming its location within a geographic zone permitted for the buyer.
Twelfth: Executive Purchase Steps
- Determining the buyer's status and completing identity requirements.
- Accessing the 'Saudi Real Estate' portal and reviewing the maps.
- Selecting an in-kind registered property and conducting legal due diligence.
- Executing the brokerage contract and submitting the application through the portal.
- Paying approved taxes and fees, and registering with the Real Estate Registry.
Thirteenth: Real Estate Transaction Tax (RETT) and Fees
Real Estate Transaction Tax
Real estate transactions are subject to a tax rate of 5% pursuant to the Real Estate Transaction Tax Law and its executive regulations, unless a legal exemption applies.
Non-Saudi Disposition Fee
The system stipulated a fee collected by the General Real Estate Authority when a non-Saudi disposes of an in-kind right, not exceeding 5%. The executive regulations specified the fee rate at 2% on covered dispositions within the cities of: Riyadh, Makkah, Madinah, and Jeddah Governorate, with certain excluded cases set at zero percent.
Fourteenth: Can a non-Saudi lease or sell the property?
The general rule is that the owner of a real estate right can dispose of it in accordance with the provisions of the law; however, engaging in commercial activities, reselling, or leasing is subject to municipal and regulatory requirements specific to each zone and use.
Fifteenth: Common Misconceptions
- "Non-residents cannot purchase": Incorrect, as they can purchase via the Digital ID upon meeting the requirements.
- "Digital ID grants residency": Incorrect, as it is dedicated solely to digital real estate transactions.
- "Ownership is completely prohibited in Makkah and Madinah": Incorrect, as it is available to Muslim individuals according to approved zones.
Sixteenth: Role of the Real Estate Broker and Contacting Us
A licensed real estate broker performs preliminary zone verifications, regulates relations between parties, and documents contracts. To submit your request, you can visit the Property Request Page, or contact our team directly via the Contact Page.
Legal Disclaimer: This article was prepared for general awareness purposes based on regulations issued up to August 2026. Regulatory changes and zones always require direct verification with official authorities before completing any transactions.
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