Saudi Arabia Restricts Property Ownership for Foreigners to Registered Real Estate

Saudi Arabia has announced that non-Saudis will only be allowed to own registered properties under the new Real Estate Ownership Law, which takes effect in January 2026. The Real Estate General Authority (REGA) stated that foreign individuals and entities must provide complete data and information as required by regulations to qualify for ownership.
Approved in July, the updated law introduces new fees and taxes amounting to 10% of the property value, including a real estate transaction tax and administrative fees. Violations could result in fines of up to SR10 million, and properties acquired through false information will be auctioned publicly.
Ownership rights will extend to five categories: non-Saudi individuals, non-Saudi companies, Saudi firms with foreign shareholders, non-profit entities, and diplomatic missions. REGA plans to release detailed maps outlining areas in Riyadh, Jeddah, Makkah, Madinah, and other cities where non-Saudis may own real estate, specifying permitted ownership limits and conditions.
The law aims to regulate foreign property ownership while promoting transparency and organized investment in the Kingdom’s real estate sector. Designated geographic zones will allow ownership for residential, commercial, and institutional purposes, subject to specific restrictions outlined in the executive regulations.