Arabic
Issued by Royal Decree D/14
Article 1
The following words and phrases—wherever they appear in this law—have the meanings assigned to each of them:
Law:
The Law of Real Estate Ownership by Non-Saudis.
Regulation:
The executive regulation of the law.
Authority:
The Real Estate General Authority.
Non-Saudi:
1․ A natural person who does not hold Saudi nationality.
2․ A non-Saudi company.
3․ A non-Saudi non-profit entity.
4․ Any other non-Saudi legal person determined by a decision of the Council of Ministers.
Article 2
1․ A non-Saudi may own real estate or acquire other rights in rem over real estate in the Kingdom, within the geographical scope specified by the Council of Ministers by virtue of paragraph 2 of this article.
2․ The following must be determined by a decision of the Council of Ministers, based on a proposal by the board of directors of the authority and the approval of the Council of Economic and Development Affairs:
(a) The geographical scope in which a non-Saudi may own real estate or acquire other rights in rem over real estate.
(b) The types of rights in rem over real estate that a non-Saudi may acquire.
(c) The maximum non-Saudi ownership percentage in the geographical scope.
(d) The maximum grace period allowed for the acquisition of the usufruct right over real estate for a non-Saudi.
(e) Any controls relating to the ownership of real estate by a non-Saudi or the acquisition of rights in rem over it.
3․ In addition to the rights of non-Saudis stipulated in paragraphs 1 and 2 of this article, a natural non-Saudi who legally resides in the Kingdom may own one real estate designated for his residence outside the geographical scope referred to in paragraph 2 of this article, with the exception of the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah. The regulation must specify the provisions of this paragraph.
4․ The right of a non-Saudi to own real estate or acquire other rights in rem—referred to in paragraph 1 of this article—over real estate in the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah is limited to a natural person who is a Muslim.
Article 3
1․ A company not listed on the Saudi Stock Exchange established in accordance with the provisions of the Saudi Companies Law, and whose capital is jointly owned by one or more natural or legal persons who do not enjoy Saudi nationality, may own real estate or acquire other rights in rem over real estate, within the geographical scope referred to in article 2(2) of the law, including the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah.
2․ Subject to the provisions of paragraph 1 of this article and any privileges granted by other laws, the company referred to in paragraph 1 of this article may own real estate or acquire other rights in rem over real estate necessary for the exercise of its activities and for the housing of its employees, within or outside the geographical scope referred to in article 2(2) of the law, as specified by the regulation.
Article 4
Companies listed on the Saudi Stock Exchange established in accordance with the provisions of the Companies Law, investment funds, and special purpose vehicles licensed by law, may own real estate and acquire other rights in rem over real estate in the Kingdom—including the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah—in accordance with the provisions of the Capital Market Law and its executive regulations, and the controls set by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant entities.
Article 5
The application of the law does not prejudice the provisions of the Premium Residency Law, the System of the Ownership of Real Estate by Nationals of the States of the Council in the Member States of the Cooperation Council for the Purpose of Housing and Investment, or other applicable laws that grant non-Saudis more favorable rights with regard to the ownership of real estate and the acquisition of other rights in rem over it.
Article 6
The ownership of real estate by a non-Saudi or the acquisition of other rights in rem over real estate in the Kingdom does not result in any rights or privileges other than the rights prescribed for the owner of the right in rem by law.
Article 7
It is permitted—on the basis of reciprocity—for diplomatic representations accredited in the Kingdom to own their official headquarters and the residence of their head and members, and it is permitted for international and regional bodies—to the extent required by the agreements governing them—to own their official headquarters, provided that the approval of the Ministry of Foreign Affairs is obtained.
Article 8
1․ A non-Saudi company, a non-Saudi non-profit entity, or a non-Saudi entity specified by a decision of the Council of Ministers—referred to in paragraphs 2, 3, and 4 of the definition of a non-Saudi—shall register with the competent entity before owning real estate or acquiring other rights in rem over real estate in the Kingdom, as specified by the regulation.
2․ The ownership of real estate by a non-Saudi or the acquisition of other rights in rem over real estate in the Kingdom is valid after its registration with the Real Estate Registry in accordance with the provisions governing this.
Article 9
Without prejudice to any fees or taxes prescribed by law, a fee collected by the authority on the value of the non-Saudi’s disposal of rights in rem over real estate in the Kingdom must be imposed, not exceeding 5% of that value.
Article 10
1․ Without prejudice to any punishment more severe stipulated in any other law, whoever violates the provisions of the law or the regulation must be punished by any of the following:
(a) Warning.
(b) A fine not exceeding 5% of the value of the right in rem subject of the violation, not exceeding 10,000,000 (ten million) Riyal.
2․ The regulation must specify a schedule of violations and the punishments prescribed for them based on the provisions of the law and the regulation. The punishment must be determined based on the gravity of the violation and its circumstances, facts, and impact.
Article 11
1․ A committee (or more) of not less than three members, specialized in law, must be formed by a decision of the board of directors of the authority, and it shall examine the violations and impose the punishments provided in article 10 of the law.
2․ The work rules of the committee, its procedures, and the remuneration of its members must be determined by a decision by the board of directors of the authority.
3․ It is permitted to object to the decisions of the committee before the Administrative Court within 60 days from the date of being notified of them.
Article 12
1․ As an exception to article 10 of the law and without prejudice to any punishment more severe stipulated in any other law, a non-Saudi who deliberately provides incorrect or misleading information that leads to his ownership of the real estate or his acquisition of any of the other rights in rem over the real estate must be punished by the following:
(a) A fine not exceeding 5% of the value of the right in rem subject of the violation, not exceeding 10,000,000 (ten million) Riyal.
(b) Sale of the right in rem over the real estate.
2․ The Public Prosecution has the mandate to investigate and prosecute the act referred to in paragraph 1 of this article, and the competent court shall examine this and impose the punishment.
3․ If the court rules to sell the right in rem in accordance with paragraph 2 of this article, the price of the right in rem or the amount paid for its acquisition must be returned to the perpetrator of the act—after deducting the fines, any other taxes or fees prescribed by law, and the expenses of the sale from it—whichever is less, and the remainder of the proceeds of the sale must be transferred to the public treasury of the state.
Article 13
1․ The Council of Ministers shall issue the regulation—based on a proposal by the board of directors of the authority and the approval of the Council of Economic and Development Affairs—within 180 days from the date of publication of the law in the official gazette, and it becomes effective from the date of entry into force of the law.
2․ The regulation must specify:
(a) Procedures for the acquisition of rights in rem over real estate in the Kingdom by a non-Saudi.
(b) Requirements for the implementation of the provisions of the law prescribed for non-Saudis who are not resident in the Kingdom.
(c) The amount of the fee mentioned in article 9 of the law, provided that it is determined based on the type of right in rem of the real estate, its purpose, and the geographical scope.
(d) Disposals subject to zero fee and the cases, conditions, and controls necessary for this.
Article 14
This law replaces the Law of Real Estate Ownership and Investment by Non-Saudis issued by Royal Decree D/15 dated 17 Rabi Al-Thani 1421 [19 July 2000], and repeals provisions in conflict with it.
Article 15
The law comes into force after 180 days from the date of its publication in the official gazette.
Published in Umm Al-Qura 5098 issued on 25 July 2025.