Latest news with #Non-SaudiRealEstateOwnershipLaw
Leaders
a day ago
- Business
- Leaders
Saudi Arabia Rolls out New Law Allowing Non-Residents to Purchase Property
Saudi Arabia's Cabinet has approved a digital identification system allowing non-Saudi, non-resident foreigners to purchase property in the Kingdom, according to Gulf News. The Cabinet also approved a governance framework for non-Saudi property ownership and usufruct rights, based on recommendations from the Strategic Committee of the Council of Economic and Development Affairs. Part of this framework includes establishing a dedicated committee within the authority's board to oversee the sector. Moreover, the General Real Estate Authority, in coordination with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority, the National Information Centre and other relevant agencies, will have the authority to develop mechanisms for implementing the digital ID in preparation for the rollout of the Non-Saudi Real Estate Ownership Law. The new ownership law, approved in last July, is set take effect in January 2026. In August, the authority released draft executive regulations stipulating that non-resident foreigners must meet the following requirements in order to acquire or utilize property in the Kingdom: Obtaining and activating a digital ID via the government's Absher platform Opening a Saudi bank account Registering a local contact number By streamlining transactions and boosting regulatory oversight, the new measure will attract more foreign investment into Saudi Arabia's evolving real estate market. Related Topics: Saudi Real Estate Smashes Records in 24 Months RFF 2025 in Riyadh: Shaping Real Estate Future Interview: ROSHN Group's Role in Shaping Saudi Arabia's Real Estate Future Short link : Post Views: 25 Related Stories
Gulf Insider
a day ago
- Business
- Gulf Insider
Saudi Arabia Allows Non-Resident Foreigners To Use Digital ID To Buy Property
Saudi Arabia will allow non-Saudi, non-resident foreigners to purchase property in the Kingdom using a digital identification system, following a Cabinet decision approved last week. The measure authorises the General Real Estate Authority, in coordination with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority, the National Information Centre and other relevant agencies, to develop mechanisms for activating the digital ID ahead of the rollout of the Non-Saudi Real Estate Ownership Law. The Cabinet also endorsed a governance framework for non-Saudi property ownership and usufruct rights, as recommended by the Strategic Committee of the Council of Economic and Development Affairs. This includes the formation of a specialised committee within the authority's board to oversee the sector. As part of the changes, the General Real Estate Authority's board has been restructured, with its chief executive now serving as chairman, alongside members from several ministries and three representatives from the private sector. The new ownership law, approved in July, will take effect in January 2026. In August, the authority issued draft executive regulations requiring non-resident foreigners to obtain and activate a digital ID through the government's Absher platform, open a Saudi bank account, and secure a local contact number before acquiring or using property in the Kingdom. The move aims to streamline transactions, strengthen regulatory oversight, and attract more foreign investment into Saudi Arabia's real estate market.
Time of India
a day 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.
Saudi Gazette
2 days ago
- Business
- Saudi Gazette
Saudi Arabia approves digital ID use for non-resident foreigners to own property
Saudi Gazette report RIYADH — Saudi Arabia's Cabinet has approved the use of a digital ID to enable non-Saudi, non-resident foreigners to own property in the Kingdom. The General Real Estate Authority will coordinate with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, and other relevant bodies to develop mechanisms for activating the digital ID. The move aims to allow its use ahead of the implementation of the Non-Saudi Real Estate Ownership Law. The Cabinet also endorsed a decision by the Strategic Committee of the Council of Economic and Development Affairs on governance for non-Saudi property ownership and usufruct rights, including forming a committee within the authority's board to oversee these matters. The board of the General Real Estate Authority has been restructured under its CEO's chairmanship, with members from several ministries, government bodies, and three private-sector representatives. In July, the Cabinet approved the Non-Saudi Real Estate Ownership Law, which will take effect in January 2026. Last month, the authority also released a draft of the law's executive regulations, requiring non-resident foreigners to obtain and activate a digital ID via the Absher platform, open a Saudi bank account, and secure a local contact number before acquiring or using property.
Saudi Gazette
02-08-2025
- Business
- Saudi Gazette
Saudi Gazette publishes full text of new foreign property ownership law
Saudi Gazette report RIYADH — Saudi Gazette has obtained an official copy of Saudi Arabia's 'Non-Saudi Real Estate Ownership Law' and is publishing the complete English text of its 15 articles below. The law consists of 15 articles and will come into force 180 days after its publication. The new framework allows non-Saudis — including individuals, companies, and non-profit entities — to own or acquire rights to real estate within geographic areas to be designated by the Council of Ministers. It introduces provisions for foreign companies, investment funds, and special-purpose entities to own property across the Kingdom, including Makkah and Madinah, under strict conditions. While the law grants wider ownership rights, it places restrictions on sensitive locations, limiting property ownership in Makkah and Madinah to Muslim individuals. It also mandates registration with the competent authorities, introduces a fee of up to 5 percent on disposals, and sets penalties of up to SR10 million or forced sale of property in case of violations. The legislation replaces the previous 2000 law and establishes a comprehensive, transparent system to regulate foreign ownership of real estate in the Kingdom. To read the full text of the law, here are the articles in detail: Article 1: Definitions For the purposes of this Law, the following terms shall have the meanings assigned to them: Law: The Non-Saudi Real Estate Ownership Law. Regulations: The implementing regulations of the Law. Authority: The Real Estate General Authority. Non-Saudi: A natural person who does not hold Saudi nationality. A non-Saudi company. A non-Saudi non-profit entity. Any other non-Saudi legal person designated by decision of the Council of Ministers. Article 2: General ownership provisions A non-Saudi may own real estate or acquire other real rights in real estate within geographic areas to be defined under Paragraph (2) of this Article. By decision of the Council of Ministers — based on a proposal from the Authority's Board of Directors and approval of the Council of Economic and Development Affairs — the following shall be determined: a. The geographic zones where non-Saudis may own or acquire real rights. b. The types of real rights non-Saudis may acquire. c. The maximum percentage of ownership permitted to non-Saudis within such zones. d. The maximum duration for usufruct rights for non-Saudis. e. Any controls related to non-Saudi ownership or acquisition of real rights. In addition to the rights set out in Paragraphs (1) and (2), a natural person legally residing in the Kingdom may own one residential property outside the designated zones, except in Makkah and Madinah. The Regulations shall set the provisions of this Paragraph. In Makkah and Madinah, non-Saudi ownership or acquisition of real rights shall be limited to natural persons who are Muslims. Article 3: Non-listed foreign companies A non-listed company incorporated under Saudi law with one or more foreign shareholders may own or acquire real rights in property within the zones defined under Article 2(2), including in Makkah and Madinah. Subject to Paragraph (1) and other applicable laws, such companies may also acquire property or rights needed for their activities or for staff housing inside or outside the designated zones, in accordance with the Regulations. Article 4: Listed companies and funds Listed companies, investment funds, and special-purpose entities licensed under Saudi law may own or acquire real rights in property across the Kingdom — including in Makkah and Madinah — in accordance with the Capital Market Law, its implementing regulations, and controls established by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant bodies. Article 5: Relation with other laws This Law shall not prejudice the application of the Premium Residency Law, the GCC nationals' reciprocal property ownership framework, or any other laws granting more favorable rights to non-Saudis. Article 6: Scope of rights Ownership or acquisition of real rights by a non-Saudi does not confer any privileges beyond those prescribed by law for the holder of such rights. Article 7: Diplomatic and international entities Subject to reciprocity, accredited diplomatic missions in the Kingdom may own official premises and residences for heads of mission and staff. International and regional organizations may own their official premises as permitted under their governing treaties, subject to approval from the Ministry of Foreign Affairs. Article 8: Registration requirements Non-Saudi companies, non-profit entities, or other legal persons designated by the Council of Ministers must register with the competent authority before acquiring property or real rights in the Kingdom, in accordance with the Regulations. Non-Saudi ownership or acquisition of real rights shall only be valid upon registration with the Real Estate Register in accordance with applicable laws. Article 9: Fees Without prejudice to existing taxes or fees, the Authority shall levy a fee not exceeding 5% of the value of any disposal by a non-Saudi of real rights in property in the Kingdom. Article 10: Penalties Without prejudice to harsher penalties under other laws, any violation of this Law or its Regulations shall result in one or more of the following: a. A warning. b. A fine not exceeding 5% of the value of the real right concerned, capped at SR10,000,000. The Regulations shall include a schedule of violations and corresponding penalties, taking into account the seriousness, circumstances, and effects of the violation. Article 11: Committees One or more committees of at least three legal specialists shall be formed by decision of the Authority's Board to examine violations and impose penalties under Article 10. The Authority's Board shall set the rules, procedures, and compensation for committee members. Committee decisions may be appealed before the Administrative Court within 60 days of notification. Article 12: False information Without prejudice to harsher penalties under other laws, a non-Saudi who knowingly provides false or misleading information to acquire property or rights under this Law shall be subject to: a. A fine not exceeding 5% of the value of the real right concerned, capped at SR10,000,000. b. Forced sale of the real right. The Public Prosecution shall investigate and prosecute such violations, with jurisdiction resting in the competent court. Where a court orders the sale of a real right, the violator shall be refunded either the purchase price or the sale proceeds, whichever is less, after deducting fines, taxes, fees, and sale expenses. Any surplus shall be paid to the State Treasury. Article 13: Regulations The Regulations shall be issued by the Council of Ministers within 180 days of publication, based on a proposal by the Authority's Board and approval of the Council of Economic and Development Affairs, and shall take effect upon enforcement of this Law. The Regulations shall determine: a. Procedures for non-Saudis acquiring real rights in property. b. Requirements for enforcing this Law on non-Saudis not residing in the Kingdom. c. The applicable fee under Article 9, based on property type, purpose, and location. d. Transactions subject to a zero percent fee and related conditions. Article 14: Repeal of previous law This Law repeals the 'Non-Saudi Real Estate Ownership and Investment Law' issued by Royal Decree No. (M/15) dated 17/4/1421H, and annuls any conflicting provisions. Article 15: Entry into force This Law shall take effect 180 days after its publication in the official gazette.
