It includes Mecca and Medina.. Saudi Arabia determines the places where foreigners own real estate | economy

Yesterday, Tuesday, the Saudi Council of Ministers approved the executive regulations for the system of non-Saudi ownership of real estate, and the geographic scopes that regulate foreigners’ ownership of real estate or the acquisition of real rights over it within the Kingdom, in a step that completes the implementation framework of the updated system.

In July 2025, the Saudi Council of Ministers approved the updated system for non-Saudis to own real estate, with the decision entering into force as of January 2026.

Ownership domains

According to the Saudi Real Estate General Authority, the geographical scopes document includes the ownership zones of non-Saudis in Riyadh, Jeddah, Mecca, Medina, and all cities and governorates of the Kingdom, but it adds that the document includes maps of specific locations that show the permitted percentages of ownership, types of acquired rights, grace periods, and controls related to ownership or acquisition of real rights.

The system of foreign ownership of real estate in Saudi Arabia stipulates that the Council of Ministers’ decision specifies 5 main elements as follows:

• The geographical scope in which ownership is permitted.
• Types of real rights that may be acquired.
• Maximum non-Saudi ownership percentages.
• The maximum period for acquiring the usufruct right.
• Any other controls related to ownership or acquisition of real rights.

Special controls

The system allows a non-Saudi who is a natural resident, legally residing in the Kingdom, to own one property designated for his residence outside the specified geographical areas.

Companies whose capital is owned by one or more people who do not hold Saudi nationality are also allowed to own real estate or acquire real rights within the specified geographic scope, including Mecca and Medina, in accordance with the provisions of the law and regulations.

Executive framework

The executive regulations specify the procedures for non-Saudis to acquire real rights over real estate, the requirements for applying the provisions of the system to non-Saudis not residing in the Kingdom, the amount of the fee imposed on real estate transactions, and the cases subject to the fee at a zero rate.

The system stipulates the imposition of a fee collected by the Authority on the value of a non-Saudi’s disposal of real rights over real estate in the Kingdom, provided that it does not exceed 5% of that value, without prejudice to any legally prescribed fees or taxes.

The approval of the regulations and geographical scopes comes after the issuance of the updated system for non-Saudis to own real estate, which the General Real Estate Authority said represents a regulatory framework to enable non-Saudis to own real estate according to specific controls and geographical scopes, in a way that enhances the attractiveness of investment and supports the efficiency of the real estate market, and the goals of Saudi Vision 2030.