Post by : Maya Rahman

Beginning January 2026, a new legal framework in Saudi Arabia will permit foreign nationals to acquire property in the Kingdom. This legislation specifies the types of properties available for purchase, geographical restrictions, and applicable limits. This initiative is designed to attract investment while ensuring transparent regulations.

Foreign buyers can purchase residential properties in nearly all Saudi cities, with notable exceptions for Makkah, Madinah, Jeddah, and Riyadh. Authorities may expand ownership options in specified areas within these cities at a later date. Non-Saudi residents are allowed to own one home outside these restricted zones, whereas Makkah and Madinah are accessible only to Muslims. Non-residents may only invest in designated properties.

All categories of commercial, industrial, and agricultural real estate will also be open to foreign ownership across all cities in Saudi Arabia. This move is expected to boost foreign investment, stimulate business growth, and foster agricultural advancement throughout the Kingdom.

The legislation introduces regulatory parameters, including geographical limits, ownership caps, and categories of real estate rights. The Council of Ministers, guided by recommendations from the Real Estate General Authority, will determine the specific ownership limitations and conditions. Additionally, the law guarantees that foreign ownership will not offer additional privileges or interfere with existing programs, such as the Premium Residency Program or GCC agreements.

All non-Saudi companies and individuals are required to register with the relevant authorities. Ownership becomes legally recognized only after being documented in the Real Estate Registry. A transaction fee of up to 5% of the property value will be charged as outlined in the executive regulations.

Noncompliance with these regulations may lead to penalties or warnings, with false declarations potentially incurring fines up to SR10 million or, in some instances, a court-ordered divestment of the property.

With these new regulations, Saudi Arabia seeks to open its real estate market to international investors while ensuring that growth remains regulated, transparent, and comprehensive across both residential and commercial sectors.

#Global News #Business News #Saudi Arabia News #World News