Latest news with #non-Saudis
Time of India
3 days ago
- Business
- Time of India
Saudi's New Law: Foreigners can own property across the kingdom, except in these two cities
Foreigners Allowed to Own Property in Saudi Arabia, Except Makkah and Madinah/ Representative Image TL;DR Foreigners can now own property in Saudi Arabia but only in specific zones and under clear rules. Ownership in holy cities like Makkah and Madinah is still mostly restricted. Non-Saudis must register their ownership, and there are fees and penalties for violations. Saudi Arabia recently published a new law that changes how foreigners can own real estate in the Kingdom. This law, announced officially on July 25 in the Umm Al-Qura gazette, will start applying 180 days from its release. It's a big shift in policy because it allows non-Saudis, whether individuals, companies, or organizations—to buy and hold property under certain conditions. Before, the rules were more restrictive, especially in holy cities like Makkah and Madinah. The new law still protects these cities by limiting ownership, but it also opens new opportunities for foreigners in other areas. This change comes as part of Saudi Arabia's wider plan to attract investment and encourage economic growth, but with clear limits to protect cultural and religious sensitivities. What the New Law Allows Foreign Ownership Zones: The government will define specific areas where foreigners can buy property. These zones will come with rules about how much property can be owned and for how long. Types of Rights: Ownership isn't just about buying a building. The law includes rights like usufruct (the right to use and benefit from property), leases, and other property interests. Individuals and Corporations: Both people living in Saudi Arabia and foreign companies can own property. For individuals, owning one home outside restricted zones is allowed for personal use. Companies can buy property to support their business or house employees. Diplomatic and International Use: Foreign embassies and international organizations can own property for their official work, but they need approval from the Saudi Foreign Ministry. Ownership Zones and Rights The government will designate certain zones where foreigners are allowed to own property. These zones will have defined limits on ownership percentages and the duration of property rights. The law covers various types of rights, including full ownership, leases, and usufruct rights, which means the right to use and benefit from property without owning it outright. Foreign individuals legally residing in Saudi Arabia can own one residential property outside restricted zones for personal use only. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Foreign companies can buy property throughout the Kingdom to support their business operations or to provide housing for employees. Diplomatic missions and international organizations can also own property for official purposes, subject to approval from the Saudi Foreign Ministry. Restrictions in Holy Cities The law maintains strict limits on foreign property ownership in the holy cities of Makkah and Madinah. Only Muslim individuals can own property there, and even then, ownership is allowed only under specific conditions. Foreign residents are also restricted to owning just one home for personal housing outside these restricted zones. This ensures that religious and cultural sensitivities are respected while opening up other parts of the country for foreign ownership. Registration, Fees, and Penalties Foreign property owners must register their ownership with the national real estate registry for it to be legally recognized. The law introduces a transfer fee of up to 5% on property transactions involving foreigners. Violations of the law can result in hefty fines of up to SAR 10 million (approximately $2.67 Million). In serious cases, such as using fake documents, authorities can force the sale of the property, with the proceeds going to the state after necessary deductions. To monitor and enforce these rules, a committee under the Real Estate General Authority will investigate violations and impose penalties. Property owners have the right to appeal committee decisions to administrative courts within 60 days. Protection of Existing Ownership and GCC Citizens The law protects all foreign property rights that existed before its enactment, so current foreign owners won't lose their rights. It also removes an earlier ban that prevented Gulf Cooperation Council (GCC) citizens from owning property in Makkah and Madinah. Now, GCC citizens are subject to the same rules as other foreigners, which simplifies the legal framework around foreign ownership in the Kingdom. What Comes Next The Saudi government plans to issue executive regulations within six months. These will provide details on geographic boundaries for foreign ownership zones and explain how the law will be applied in practice. Foreign buyers and investors should watch for these updates to understand exactly where and how they can legally purchase property in Saudi Arabia. FAQs 1. Can any foreigner buy property anywhere in Saudi Arabia now? No. Foreign ownership is limited to government-designated zones. Ownership in holy cities remains mostly restricted. 2. What types of property rights are allowed? Foreigners can own property outright or hold other rights like leases and usufruct, depending on the rules for the zone. 3. What happens if a foreigner breaks the ownership rules? They may face fines up to SAR 10 million, and in severe cases, their property can be sold by the authorities with proceeds going to the state.
Arab Times
5 days ago
- Business
- Arab Times
Saudi Arabia shares full text of the law allowing non-Saudis to own property
RIYADH, Saudi Arabia, July 26: Saudi Arabia has released the full text of a landmark law regulating real estate ownership by non-Saudis, signaling a major transformation in the Kingdom's property ownership policies, Saudi Gazette reported. The law, which was approved by the Cabinet earlier this month, was officially published in the Umm Al-Qura Gazette on Friday and will come into effect 180 days from its publication date. Expanded ownership rights for foreigners The new legislation grants non-Saudis — including individuals, companies, and non-profit organizations — the right to own or acquire real rights to properties in designated areas, which will be defined by the Cabinet. These rights include full ownership, usufruct (the right to use and benefit from a property), leaseholds, and other legal property interests. However, ownership will be subject to several restrictions depending on the property's location, type, and intended use. Restrictions on Makkah and Madinah remain Despite the broadened access, the law maintains strict limitations on foreign ownership in certain sensitive regions — most notably Makkah and Madinah. Foreign ownership in these cities remains prohibited except under specific conditions for individual Muslim owners. The previous ban on ownership by GCC nationals in these areas has been lifted, aligning all non-Saudi entities under a single regulatory system. Designated zones and limits to be determined A key element of the law assigns the Council of Ministers — in collaboration with the Real Estate General Authority and with approval from the Council of Economic and Development Affairs — the authority to determine the geographical zones where foreign ownership will be allowed. The Council will also set caps on ownership percentages and durations for usufruct rights, according to Saudi Gazette. Regulations for Foreign Residents and Companies Under the new law, foreign residents in Saudi Arabia will be permitted to own one residential property for personal use, provided it is outside restricted zones such as Makkah and Madinah. For corporate entities, the law allows non-listed companies with foreign stakeholders, licensed investment funds, and special-purpose entities to own property anywhere in the Kingdom — including the holy cities — as long as the property is used for operational purposes or employee accommodation. Publicly listed companies and other investment vehicles may also purchase property in line with current Capital Market Authority regulations. Ownership by diplomatic and international entities Diplomatic missions and international organizations will be allowed to own real estate for official purposes and housing of their representatives. However, such ownership will be subject to the approval of the Ministry of Foreign Affairs and reciprocal arrangements with the relevant countries. Mandatory registration and transfer fees All non-Saudi entities must register with the appropriate authority before acquiring property. Legal recognition of ownership or usufruct rights will only take effect upon registration in the national real estate registry. A real estate transfer fee of up to 5% will apply to property transactions involving non-Saudis, Saudi Gazette confirmed. Enforcement and penalties The law introduces a robust enforcement mechanism. Violations can lead to fines of up to SAR 10 million. If a property was acquired based on false information, the authorities may enforce a compulsory sale, with the proceeds (after deductions) going to the state. A specialized committee under the Real Estate General Authority will investigate violations and impose penalties. Parties may appeal committee decisions to the administrative courts within 60 days. This new law replaces Royal Decree No. M/15 of 2000, which had governed foreign ownership of property. Detailed executive regulations covering implementation, designated areas, and specific requirements are expected to be issued within the next six months.
Time of India
5 days ago
- Business
- Time of India
Saudi Arabia introduces new law allowing foreigners to own property
Synopsis Saudi Arabia has enacted a new law opening its real estate sector to foreign ownership, effective in 180 days. It allows foreign individuals, companies, and organizations to own property in designated zones, subject to restrictions. While maintaining restrictions in Makkah and Madinah, the law replaces the 2000 Royal Decree and introduces a framework for property transactions involving non-Saudis.
Arabian Post
5 days ago
- Business
- Arabian Post
Saudi Arabia Unveils New Real Estate Ownership Law for Foreigners
Saudi Arabia has revealed the complete details of a groundbreaking law that regulates real estate ownership by non-Saudis, following its approval by the Cabinet earlier this month. The law, which will be enacted 180 days from its publication, signals a significant shift in the Kingdom's stance towards foreign ownership of property, opening up new opportunities for individuals, companies, and non-profit entities abroad. The law, published in the official gazette Umm Al-Qura, outlines a comprehensive framework allowing non-Saudis to acquire property or establish real rights over land in the country. The key element of the reform is its establishment of specific geographic zones where foreign ownership is permitted, a move expected to attract considerable international investment. The Cabinet will play a pivotal role in defining the boundaries of these designated areas, which are likely to be concentrated in key urban and economic hubs such as Riyadh, Jeddah, and the Eastern Province. While the precise locations are yet to be announced, officials indicate that the decision will be based on strategic economic priorities, aiming to stimulate growth and diversification in critical sectors like tourism, hospitality, and logistics. ADVERTISEMENT One of the core principles of the new law is its flexibility. Unlike previous regulations, which were highly restrictive, the law grants non-Saudis the opportunity to own real estate in various forms, including commercial and residential properties. The legislation outlines conditions under which foreign entities can acquire land, offering them the chance to leverage the Kingdom's thriving economy and vibrant business environment. This legal shift is expected to have a transformative impact on Saudi Arabia's real estate market. Analysts predict an influx of foreign capital as investors look to take advantage of the Kingdom's growing appeal as a regional hub. The move is also seen as a step towards diversifying the economy, in line with the objectives set out in Saudi Arabia's Vision 2030, which aims to reduce the Kingdom's dependence on oil revenues and foster sustainable growth through non-oil sectors. Experts note that while the law represents a major departure from previous policies, it does not open up the entire country to foreign ownership. Instead, the policy is focused on ensuring that foreign property holdings contribute meaningfully to the national economy. The Cabinet will likely impose further regulations to balance the interests of local stakeholders with the benefits of foreign investment. The move could foster job creation, provide a boost to construction and development projects, and potentially increase the demand for high-quality infrastructure in designated zones. The new law also highlights Saudi Arabia's efforts to modernise its regulatory environment, providing clarity for international investors who have long been wary of the Kingdom's real estate market due to its complex legal framework. While non-Saudis have previously been able to invest in real estate through specific channels like joint ventures and special economic zones, this new legislation offers a more straightforward path for foreign ownership, which could position Saudi Arabia as a competitive player in the global real estate market. For real estate developers and global companies, this development could mean greater opportunities to tap into a burgeoning market. Large-scale projects, such as the NEOM city and Red Sea tourism initiatives, could see increased international interest as foreign ownership regulations become more transparent and accessible. ADVERTISEMENT However, there are still questions about the long-term implications of these changes. While the law offers new avenues for foreign investment, there are concerns about the potential impact on local property prices and the availability of affordable housing for Saudi citizens. Critics argue that an influx of foreign capital might inflate property values, making it harder for Saudis to purchase homes. The government is expected to address these concerns through policies that safeguard the interests of the local population, ensuring that housing remains affordable for citizens. The government's strategy also includes efforts to ensure that foreign investments contribute to the broader goals of economic diversification. By allowing foreign ownership in select zones, the Kingdom hopes to align property investments with its broader economic objectives, particularly in sectors like tourism, entertainment, and high-tech industries. For non-Saudis looking to invest, the new law provides a clearer roadmap for property ownership. Investors will need to navigate a system that offers greater transparency and less bureaucratic red tape than previous regulations. While specific details on the process of acquiring property remain to be fully clarified, the law marks a significant shift toward openness, making it more appealing to foreign capital.
Gulf Insider
6 days ago
- Business
- Gulf Insider
Saudi Arabia Publishes New Law Allowing Foreigners To Own Property
Saudi Arabia has officially published the full details of its new law regulating real estate ownership by non-Saudis, following Cabinet approval earlier this month. The comprehensive law, released in the official gazette Umm Al-Qura on Friday, will take effect 180 days from publication and marks a major overhaul in the Kingdom's approach to foreign ownership of property. The new system grants non-Saudis — including individuals, companies, and non-profit entities — the right to own property or obtain other real rights over real estate within designated geographic zones to be determined by the Cabinet. These rights include usufruct (beneficial use), leaseholds, and other real estate interests, but will be subject to a range of controls and restrictions based on location, property type, and usage. The law preserves all real estate rights that were legally established for non-Saudis prior to the new regulation taking effect. However, it clearly states that ownership remains prohibited in certain locations and regions, notably in Makkah and Madinah, except under conditions for individual Muslim owners. A key provision in the law requires the Council of Ministers — upon a proposal by the Real Estate General Authority and with the approval of the Council of Economic and Development Affairs — to define the allowable zones for foreign ownership and set upper limits on ownership percentages and durations for usufruct rights. Foreign individuals legally residing in Saudi Arabia may own one residential property outside restricted areas for personal housing purposes. This does not apply to Makkah and Madinah. The regulation also includes provisions for corporate ownership. Non-listed companies with foreign shareholders, as well as investment funds and licensed special-purpose entities, will be permitted to acquire real estate throughout the Kingdom, including in Makkah and Madinah, provided the ownership supports operational needs or employee housing. Listed companies and investment vehicles may also acquire property in line with Saudi financial market regulations. Diplomatic missions and international organizations can also own premises for official use and residence of their representatives, subject to Foreign Ministry approval and reciprocity conditions. To ensure compliance, non-Saudi entities must register with the competent authority before acquiring property. Ownership or real rights become valid only after formal registration in the national real estate registry. The law introduces a real estate transfer fee of up to 5% for transactions involving non-Saudis, and outlines a penalty framework for violations. Sanctions include fines up to SR10 million and, in severe cases such as falsified information, the forced sale of the property with proceeds remitted to the state after deductions. A dedicated committee under the Real Estate General Authority will be formed to investigate violations and impose penalties. Decisions of this committee can be appealed to the administrative courts within 60 days. Additionally, the law repeals a prior rule that prohibited GCC citizens from owning property in Makkah and Madinah, effectively standardizing rules for all non-Saudi entities under a single framework. The executive regulations, which will detail implementation mechanisms and specify geographic boundaries and conditions, are expected to be issued within six months. The new law replaces the previous foreign property ownership legislation issued under Royal Decree No. M/15 in 2000.
