Can Foreigners Own Property in Saudi Arabia?

Yes, foreigners can own property in Saudi Arabia. A landmark reform enacted through Royal Decree in 2021 fundamentally changed the Kingdom’s property ownership landscape, opening the door for non-Saudi nationals to purchase residential and commercial real estate under specific conditions. This reform represented one of the most significant regulatory shifts under Vision 2030’s broader agenda to attract foreign capital and talent.

The Legal Framework

Prior to 2021, foreign property ownership was severely restricted, limited primarily to diplomatic missions and certain GCC nationals. The updated regulations, administered by the Ministry of Investment (MISA) in coordination with the Ministry of Housing, now permit non-Saudi individuals and entities to own property for both personal use and investment purposes.

Key conditions include holding a valid residency permit (Iqama) or an investment license issued by MISA. Foreign-owned entities registered in the Kingdom may also acquire property necessary for their business operations, including industrial land, commercial offices, and employee housing. The property must be used for lawful purposes and comply with local zoning regulations.

Restrictions That Remain

While the reform was sweeping, certain restrictions continue to apply. Foreigners cannot purchase property in Makkah or Madinah, though leasing arrangements of up to 99 years are permissible in these holy cities. Additionally, agricultural land remains subject to specific limitations depending on the region and the buyer’s nationality.

The total value of property owned by a single foreign individual or entity may also be subject to thresholds set by the Ministry of Interior. Properties acquired for investment must meet minimum value requirements, which vary by municipality but generally start at SAR 1 million for residential properties in major cities.

Premium Residency Advantage

Holders of Saudi Premium Residency, the Kingdom’s equivalent of a golden visa programme launched in 2019, enjoy expanded property rights. Premium residents can purchase property without the standard Iqama requirement and face fewer bureaucratic hurdles. This programme has been a key driver of high-net-worth foreign nationals entering the Saudi property market, particularly in Riyadh’s northern corridor and Jeddah’s waterfront developments.

As of 2025, the Premium Residency Center reported that property transactions by premium residents had increased by over 40 percent year-on-year, reflecting growing international confidence in the market.

Where Foreigners Are Buying

The most active markets for foreign property buyers include Riyadh, Jeddah, KAEC (King Abdullah Economic City), and the emerging NEOM and Red Sea developments. Riyadh alone has seen foreign residential transactions rise significantly since 2022, driven by the influx of multinational corporations establishing regional headquarters in the capital.

Giga-projects such as NEOM, The Red Sea (now Red Sea Global), and Diriyah Gate are specifically designed to accommodate international buyers. These developments offer freehold ownership within designated zones, with integrated regulatory frameworks that simplify the purchasing process for non-Saudis.

The Investment Case

Saudi Arabia’s property market has experienced robust growth since the reform. Residential prices in Riyadh increased by approximately 10 percent annually between 2022 and 2025, driven by population growth, corporate relocations, and infrastructure development. The Kingdom’s real estate sector contributed over SAR 120 billion to GDP in 2024, making it one of the fastest-growing non-oil sectors.

For foreign investors, the combination of no personal income tax, no capital gains tax on primary residences, and relatively low transaction costs creates an attractive proposition compared to other regional markets such as Dubai, where competition and pricing have intensified.

Process for Foreign Buyers

The acquisition process involves several steps. Foreign nationals must first obtain approval from MISA or, for premium residents, from the Premium Residency Center. Buyers then engage a licensed Saudi real estate agent and conduct due diligence on the property title through the Ministry of Justice’s electronic notary system. The transaction is completed through the Ijar or Sakani platforms, with title registration handled by the Real Estate General Authority (REGA).

Transaction costs typically include a 5 percent real estate transaction tax (RETT), which replaced the previous 15 percent VAT on property sales in 2020, along with notary and registration fees totaling approximately 1 to 2 percent of the purchase price.

Outlook

The Saudi government continues to liberalize property regulations as part of Vision 2030’s target to increase homeownership rates and attract foreign direct investment. Proposed amendments under review would further simplify the approval process and expand eligible zones for foreign freehold ownership, signaling that the Kingdom views real estate as a strategic pillar of economic diversification.