The new rules require digital identification, local bank accounts, and disclosure of ownership details.
Dubai: Saudi Arabia has approved a comprehensive regulatory framework governing property ownership by non-Saudis, introducing stricter disclosure requirements, mandatory digital processes, and penalties of up to SR10 million for violations.
The executive regulations for the Law of Real Estate Ownership by Non-Saudis outline the procedures through which foreign individuals, companies, and non-profit entities can own property or acquire real estate rights in the Kingdom.
The Real Estate General Authority said the updated law is designed to regulate non-Saudi ownership within defined criteria and geographic zones, while enhancing investment attractiveness and improving real estate market efficiency in line with Saudi Vision 2030.
At the core of the new framework is a unified electronic portal operated by the Real Estate General Authority and connected to the national Real Estate Registry.
The platform will act as the primary channel for submitting ownership applications, obtaining real estate rights, and completing transactions involving non-Saudi individuals, foreign companies, and Saudi companies with foreign shareholders.
Under the regulations, non-resident foreign individuals must obtain a Ministry of Interior-approved digital identity before purchasing property or acquiring any real estate rights. They are also required to open a Saudi bank account in their own name and register a Saudi mobile number linked to their digital identity.
These requirements aim to ensure buyer verification and link property transactions to official records and regulated payment systems.
Foreign companies will be subject to a separate set of requirements. They must register with the Ministry of Investment, disclose both direct and indirect beneficial owners, appoint a legal representative with an approved Saudi identity, and open a corporate bank account in the Kingdom.
Once these requirements are completed, the Ministry of Investment will issue a registration number. Companies are also required to notify the ministry within 15 days if there is a change in ownership of 5 per cent or more, whether through a single transaction or multiple transactions.
The same requirement applies if governance structures in the company’s country of incorporation allow another party to influence decision-making or restrict corporate independence.
Foreign non-profit organisations are also included under the new disclosure framework. They must register with the National Centre for Non-Profit Sector Development, disclose individuals with direct or indirect control, appoint an authorised representative with an approved Saudi identity, and maintain a Saudi bank account.
The regulations further require these entities to report significant structural changes or changes affecting decision-making control within 15 days.
The framework also sets out rules governing foreign family ownership. A foreign spouse and non-Saudi children will be treated as dependents when purchasing residential property, preventing each family member from independently owning additional homes. Exceptions apply in cases of divorce or when a son or daughter reaches the age of 25.
The regulations also include provisions for Saudi companies with foreign shareholders. Non-listed Saudi companies with foreign ownership may acquire property outside designated foreign ownership zones—excluding Mecca and Medina—subject to approval from the Ministry of Investment, provided the property is used for business operations or employee housing.
Within approved ownership zones, including Mecca and Medina, such companies may acquire property without ministry approval, in accordance with the conditions outlined in the law.
The law also maintains the religious sensitivities of the two holy cities. Previous provisions state that ownership in Mecca and Medina is limited to Muslim individuals, while companies and investment entities are subject to specific regulations.
The framework also introduces a 2 per cent fee on transactions involving real estate rights acquired by non-Saudis in Riyadh, Jeddah, Mecca, and Medina.
Ten categories of transactions are exempt, including inheritance distributions, final court rulings, expropriation for public use, donations to endowments and government entities, certain diplomatic and international organisation transactions under reciprocity agreements, as well as select transfers to wholly owned companies or investment funds.
All financial transactions related to property purchases or disposals must be completed through electronic payment systems approved under Saudi Central Bank regulations before title deeds are transferred via the Real Estate Registry.
Legal notifications will also be deemed valid if sent through communication channels registered on the electronic portal or via SMS to officially registered Saudi mobile numbers.
Enforcement powers have been strengthened under the new regulations. Inspectors appointed by the Real Estate General Authority will be authorised to investigate and document violations. Before penalties are imposed, offenders must be given between 10 and 180 days to rectify their status, depending on the nature of the breach.
Foreign buyers who provide false or misleading information to obtain property ownership rights may face fines of up to 5 per cent of the property’s value, capped at SR10 million.
Other violations—including failure to disclose ownership changes, obstructing inspectors, or not correcting breaches within the required timeframe—may lead to warnings or fines, depending on the property’s value and the severity of the violation.
The regulations are expected to be followed by a detailed procedural guide from the Real Estate General Authority outlining how the new rules will be implemented in practice.
