Latest news with #LawofRealEstateOwnershipandInvestmentbyNon-Saudis
Time of India
3 days ago
- Business
- Time of India
Saudi Arabia approves digital ID to allow foreigners to own property ahead of 2026 law
The Non-Saudi Real Estate Ownership Law will come into force on 21 January 2026, 180 days after its publication in July 2025/ Representative image In a landmark move reshaping property rights in Saudi Arabia, the government has approved the use of a digital identity system for non-Saudi, non-resident foreigners to own real estate. This comes ahead of sweeping changes under the newly passed Non-Saudi Real Estate Ownership Law, set to take effect in early 2026. New digital ID pathway for property ownership Saudi Arabia's Cabinet has officially sanctioned the use of digital identification for non-resident foreigners who wish to own property in the Kingdom. This digital ID must be obtained and activated through the Absher platform, a secure digital service operated by the Ministry of Interior. The rollout of this digital access mechanism is being coordinated by the General Real Estate Authority, in partnership with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, and other relevant government bodies. These entities will work together to define and implement the operational mechanisms necessary to activate and manage digital IDs for foreign property buyers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo The decision is intended to lay the groundwork for the enforcement of the new Non-Saudi Real Estate Ownership Law, approved by the Council of Ministers in July 2025 and scheduled to take effect on 21 January 2026, 180 days following its publication in the Official Gazette ( Umm Al-Qura ) on 25 July 2025. As part of the transition, draft executive regulations for the law have already been published. These specify that foreign individuals must: Obtain a digital ID through the Absher platform Open a Saudi bank account Secure a local contact number These prerequisites are mandatory before any non-resident foreigner can legally acquire, own, or use real estate in the country. Inside the non-Saudi real estate ownership law The newly introduced Non-Saudi Real Estate Ownership Law repeals the earlier framework established under the Law of Real Estate Ownership and Investment by Non-Saudis of 2000 (1421H). The updated legislation represents a significant modernization of Saudi Arabia's approach to foreign property rights. Structured across 15 articles, the law defines a 'Non-Saudi' broadly. The term includes: Foreign individuals (residents or non-residents) Companies not incorporated under Saudi law Foreign non-profit organizations Any other legal persons as determined by the Council of Ministers For the first time, this legal framework allows foreign individuals and entities to own or acquire rights to real estate within designated zones throughout the Kingdom. These zones will be identified and approved by the Council of Ministers and are expected to open up significant parts of the country for foreign investment. Scope, restrictions, and implementation timeline While the law grants broader access to real estate for foreigners, it also introduces new limitations and obligations. Geographic and religious restrictions: Ownership rights in Makkah and Madinah remain tightly regulated. Non-Saudis may only acquire property in these two holy cities if they are Muslim. This condition underscores the sensitive nature of ownership in religiously significant areas. Commercial and investment access The law includes specific provisions for: Foreign-incorporated companies Investment funds Special-purpose entities These entities will now be able to participate in Saudi Arabia's property market under defined conditions and oversight. Fees and penalties: A disposal fee of up to 5% may apply to property sales or transfers by foreign owners. In cases of legal violations, penalties may include: Fines of up to SAR 10 million Forced sale of the involved property Law implementation: Approved: 14 July 2025 by Council of Ministers Resolution No. (M/14) Published: 25 July 2025 in Umm Al-Qura Effective Date: 21 January 2026 Regulatory bodies and enforcement mechanisms Oversight and governance for foreign property ownership are being formalized through a newly restructured board of the General Real Estate Authority. The board is now chaired by the Authority's CEO and includes: Representatives from various ministries Officials from key government bodies Three members from the private sector A dedicated committee will be formed within the authority's board to monitor and enforce the provisions of the law, including overseeing usufruct rights (the legal right to use and benefit from a property owned by another). In line with the broader goals of Vision 2030, the Saudi government is aiming to create a transparent, accessible, and well-regulated property market that can attract international investment while preserving the Kingdom's religious, social, and security interests.
Trade Arabia
28-01-2025
- Business
- Trade Arabia
Foreigners allowed to invest in Makkah, Madinah property firms
In a major move, the Saudi Capital Market Authority (CMA) has granted foreign investors permission to invest in Saudi-listed companies that own real estate within the cities of Makkah and Madinah. This initiative is aimed at fostering investment as well as enhancing the appeal and efficiency of the capital market, and bolster its competitiveness both regionally and globally, while also supporting the local economy, said CMA in a statement. The CMA seeks to attract foreign capital and provide the necessary liquidity for ongoing and future projects in Makkah and Madinah, leveraging the Saudi market's vast investment opportunities. These efforts aim to position the Saudi market as a pivotal funding source for significant developmental initiatives in these cities, it stated. According to a statement by the CMA, the approval pertains to the 'Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis." Foreign investment will be restricted to shares of Saudi-listed companies that own real estate in Makkah and Madinah, as well as convertible debt instruments, according to the approved controls. The total ownership of non-Saudi natural and legal persons has been capped at 49% of a company's shares. However, strategic foreign investors are not permitted to own shares or convertible debt instruments in these companies, it stated. The approved controls enable non-Saudi investors to benefit from the economic advantages of existing and upcoming projects while adhering to relevant laws, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the operation or liquidation of these companies, it added. Meanwhile, the CMA has granted listed Saudi companies the right to acquire ownership, easement, or usufruct rights over properties designated for their headquarters or branch locations within Makkah and Madinah. The entirety of such properties must be utilized for these purposes, as per the exemption regulations outlined in the Law of Real Estate Ownership and Investment by Non-Saudis, said CMA in its statement. According to CMA, it has implemented numerous initiatives to enhance the appeal of the Saudi financial market and promote foreign investment. These include allowing expat investors to participate directly in the Saudi stock market, enabling foreign investors to access the market through swap agreements, facilitating investments by qualified foreign financial institutions in listed securities, permitting strategic foreign investors to acquire strategic stakes in listed companies, and allowing direct investments in debt instruments by foreign investors. These measures reflect a comprehensive and diversified financial market framework, providing various funding options for projects in Makkah and Madinah, it added. In 2021, the CMA expanded opportunities for non-Saudis by allowing their subscription to real estate funds investing within the two cities. This move further diversified funding channels within the financial market and supported the objectives of Saudi Vision 2030, which seeks to enhance the Saudi financial market's appeal to both local and foreign investors. The approved controls were finalized following the CMA's publication of the Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah on November 15, 2023.
Trade Arabia
28-01-2025
- Business
- Trade Arabia
Foreign firms allowed to invest in Makkah, Madinah property firms
In a major move, the Saudi Capital Market Authority (CMA) has granted foreign investors permission to invest in Saudi-listed companies that own real estate within the cities of Makkah and Madinah. This initiative is aimed at fostering investment as well as enhancing the appeal and efficiency of the capital market, and bolster its competitiveness both regionally and globally, while also supporting the local economy, said CMA in a statement. The CMA seeks to attract foreign capital and provide the necessary liquidity for ongoing and future projects in Makkah and Madinah, leveraging the Saudi market's vast investment opportunities. These efforts aim to position the Saudi market as a pivotal funding source for significant developmental initiatives in these cities, it stated. According to a statement by the CMA, the approval pertains to the 'Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis." Foreign investment will be restricted to shares of Saudi-listed companies that own real estate in Makkah and Madinah, as well as convertible debt instruments, according to the approved controls. The total ownership of non-Saudi natural and legal persons has been capped at 49% of a company's shares. However, strategic foreign investors are not permitted to own shares or convertible debt instruments in these companies, it stated. The approved controls enable non-Saudi investors to benefit from the economic advantages of existing and upcoming projects while adhering to relevant laws, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the operation or liquidation of these companies, it added. Meanwhile, the CMA has granted listed Saudi companies the right to acquire ownership, easement, or usufruct rights over properties designated for their headquarters or branch locations within Makkah and Madinah. The entirety of such properties must be utilized for these purposes, as per the exemption regulations outlined in the Law of Real Estate Ownership and Investment by Non-Saudis, said CMA in its statement. According to CMA, it has implemented numerous initiatives to enhance the appeal of the Saudi financial market and promote foreign investment. These include allowing expat investors to participate directly in the Saudi stock market, enabling foreign investors to access the market through swap agreements, facilitating investments by qualified foreign financial institutions in listed securities, permitting strategic foreign investors to acquire strategic stakes in listed companies, and allowing direct investments in debt instruments by foreign investors. These measures reflect a comprehensive and diversified financial market framework, providing various funding options for projects in Makkah and Madinah, it added. In 2021, the CMA expanded opportunities for non-Saudis by allowing their subscription to real estate funds investing within the two cities. This move further diversified funding channels within the financial market and supported the objectives of Saudi Vision 2030, which seeks to enhance the Saudi financial market's appeal to both local and foreign investors. The approved controls were finalized following the CMA's publication of the Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah on November 15, 2023.
Asharq Al-Awsat
28-01-2025
- Business
- Asharq Al-Awsat
Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows
Real estate experts have welcomed Saudi Arabia's decision to allow foreign investment in real estate companies in the Makkah and Madinah regions. They said it will attract more foreign capital, speed up major projects, and support development in these cities. The Saudi Capital Market Authority (CMA) said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. 'This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,' the statement added. The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis. The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. However, people without Saudi nationality would not be allowed to own more than 49% of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies. The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. Real estate expert Ahmed Al-Faqih told Asharq Al-Awsat that the decision will benefit the overall Saudi real estate market, especially in Makkah and Madinah. It will attract more foreign investment, supporting Saudi Vision 2030's goals of boosting investments and reducing reliance on oil. Al-Faqih expects the market to react positively, with more investors coming in. The decision's impact will go beyond buying and selling properties to include changes in regulations and market innovations. 'We'll see more capital flowing into the market, and development projects will transform the two cities into major construction hubs in the next five years, especially with their ongoing religious tourism during Hajj and Umrah,' said Al-Faqih. He added that the decision targets Muslims worldwide who want to invest in the holy cities, as well as other investors. 'This long-awaited move is a sign that Saudi Arabia is close to allowing foreign investment in its real estate sector,' he noted.
Gulf Insider
28-01-2025
- Business
- Gulf Insider
Saudi Arabia Allows Foreigners To Invest In Listed Companies Operating In Makkah And Madinah
The Saudi Capital Market Authority said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. The Saudi Capital Market Authority (CMA) has announced that foreigners are allowed to invest in listed Saudi companies that own real estate in the cities of Makkah and Madinah, effective from Monday, Jan. 27. The Saudi capital market regulator said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. 'This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,' the statement pointed out. The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. However, people without Saudi nationality would not be allowed to own more than 49 percent of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies. The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. It is noteworthy that the Capital Market Authority has undertaken, and continues to implement, numerous efforts and measures to enhance the attractiveness of the Saudi capital market and facilitate the entry of foreign investors, both directly and indirectly. These efforts include allowing foreign residents to directly invest in the Saudi stock market, enabling foreign investors to access the market through swap agreements, permitting qualified foreign capital institutions to invest in listed securities, allowing foreign strategic investors to acquire strategic stakes in listed companies, and enabling foreign investors to directly invest in debt instruments. These initiatives reflect the completeness and diversity of the capital market's funding options available for projects in Makkah and Madinah. In 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. This move contributed to the reliance on the capital market as a diverse financing channel and supported the objectives of Saudi Vision 2030, which aims to make the Saudi capital market attractive to both local and foreign investments. The approval of the controls came after the CMA published on 15 November 2023, the 'Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah' on the Public Consultation Platform 'Istitlaa,' affiliated with the National Competitiveness Center, and the CMA's website for public consultation for the purpose of approving the final text.
