The Saudi Cabinet has officially approved the executive regulations for the Law of Real Estate Ownership by Non-Saudis, a landmark move that formally opens the Kingdom’s property market to foreign investors and residents. The decision includes the designation of specific geographical zones where non-Saudis are permitted to own property, aiming to boost foreign direct investment and accelerate economic diversification under Vision 2030.
Quick Facts
- Cabinet approves foreign ownership regulations.
- Designated zones in major cities & giga-projects.
- Applications now open via “Saudi Properties” portal.
How Foreigners Can Buy Property in the Kingdom
The Real Estate General Authority (Rega) has outlined a clear application process. Non-Saudi individuals residing in the Kingdom can apply directly through the new “Saudi Properties” portal using their residency number.
Foreigners located outside of Saudi Arabia must first obtain a digital identity card from a Saudi mission abroad before they can complete the online application.
For international companies and entities without a current presence in the country, the process requires registration with the Ministry of Investment through the Invest Saudi platform. Upon receiving a national unified number, they can then complete the ownership process electronically.
Strategic Zones and Giga-Projects Unlocked
The government has approved specific zones for foreign ownership across the country’s key economic hubs. In Riyadh, this includes giga-projects like Diriyah, Qiddiya, King Salman Park, and the King Abdullah Financial District. Jeddah, AlUla, and developments like The Red Sea and NEOM are also open for investment.
However, ownership within the holy cities of Mecca and Medina remains restricted. Property in these locations is limited to Saudi companies and Muslim individuals, regardless of their country of residence.
A Push for Foreign Investment Amid Market Headwinds
This policy is a core component of Saudi Arabia’s strategy to attract $100 billion in annual foreign direct investment by 2030. It follows earlier announcements about granting “lifetime” residency for significant property purchases and the introduction of fractional ownership models to lower the barrier to entry for international investors.
The move comes as the local housing market shows signs of cooling due to regional economic pressures and a drop in mortgage issuances. Data from the Ministry of Justice showed a significant drop in transactions in some areas, with Diriyah reporting 38 home sales in the first quarter of this year, a 77% decrease from the 170 sold in the same period last year.
Despite the broader slowdown, some projects are already seeing traction with international buyers. Red Sea Global reported that foreigners accounted for 20% of its SAR 1.8 billion ($480 million) in residential sales.
About The Real Estate General Authority (Rega)
The Real Estate General Authority (Rega) is the official government body responsible for regulating and developing Saudi Arabia’s real estate sector. Its mandate includes increasing the sector’s contribution to the GDP, stimulating investment, and enhancing transparency for all stakeholders in line with the objectives of Saudi Vision 2030.
Source: EntArabi
