Executive Regulations for the Non-Saudi Property Ownership System | The Complete Guide
Saudi Arabia’s economic momentum under Vision 2030 marks a defining chapter for global real estate investors.
Executive Regulations for the Non-Saudi Property Ownership System represent a decisive step toward a more open, transparent, and internationally aligned property market.
In this comprehensive guide by Habitare Real Estate, we explore the Executive Regulations for the Non-Saudi Property Ownership System, from strategic objectives and eligibility conditions to ownership rules for individuals and foreign companies, ending with access to the official regulations.
General Overview of the New Property Ownership System for Non-Saudis
Saudi Arabia has modernized its property ownership framework that had been in place since 2000.
The updated executive regulations were issued in 2025 under Royal Decree M/15 and consist of 15 articles published in the Official Gazette Umm Al Qura.
The new framework supersedes all conflicting provisions of the previous system, ensuring clarity, legal certainty, and a stable investment environment for international buyers.
Main Objectives of the Executive Regulations for Property Ownership in Saudi Arabia
The Executive Regulations for the Non-Saudi Property Ownership System are closely aligned with Vision 2030 and focus on six core objectives.
1- Attracting Foreign Direct Investment
The regulations simplify ownership procedures and reduce legal complexity, encouraging global capital to enter the Saudi market with confidence.
2- Strengthening Transparency and Governance
Clear compliance mechanisms and defined penalties prevent misrepresentation and enhance trust across the real estate ecosystem.
3- Supporting Balanced Urban Development
By guiding foreign investment into designated sectors, the system promotes sustainable growth while limiting speculative practices.
4- Preserving Religious and Cultural Identity
Property ownership in Makkah and Madinah is limited to Muslim individuals and Saudi registered companies, safeguarding their unique status.
5- Enhancing Long Term Sector Sustainability
Real estate transaction taxes paid by foreign investors support non-oil government revenues and sector resilience.
6- Empowering Lawful Residents
Eligible resident non-Saudis may own one residential property for personal use, reinforcing social stability and long-term residency.
Conditions for Individual Non-Saudis to Own Property
Executive Regulations for the Non-Saudi Property Ownership System in Practice:
The executive regulations establish clear eligibility requirements for individual buyers:
- Non-Saudi individuals must comply with location restrictions set by the Council of Ministers.
- Ownership in Makkah and Madinah requires the individual to be Muslim.
- Ownership ratios and usufruct periods are defined by regulatory authorities.
- Accurate disclosure of identity, funding sources, and investment intent is mandatory.
- Real estate transaction tax applies at a rate not exceeding 5 percent of the in rem right value.
- Resident non-Saudis may own one residential property for themselves and dependents.
- Non-residents may own property upon obtaining a digital identity, opening a Saudi bank account, and registering a local contact number.
Conditions for Foreign Companies to Own Property in Saudi Arabia
Executive Regulations for the Non-Saudi Property Ownership System for Corporates:
- Foreign companies are subject to additional requirements reflecting their legal structure.
- The company must be officially registered with the Ministry of Investment and hold good legal standing.
- Detailed disclosure of capital structure and shareholders is required, including material updates.
- Ownership must directly serve the company’s licensed business activity.
- Listed entities and investment funds must comply with Capital Market Authority regulations.
- Saudi incorporated companies may own property in Makkah and Madinah.
- Real estate transaction tax applies at a rate not exceeding 5 percent of the in rem right value.
Executive Regulations for the Non-Saudi Property Ownership System PDF
For those seeking full legal texts, the official Executive Regulations for the Non-Saudi Property Ownership System PDF is available through the designated government link.
Owning Property in Saudi Arabia with Habitare Real Estate
Navigating real estate regulations can feel complex without trusted guidance.
At Habitare Real Estate, we serve as your strategic partner, transforming regulatory requirements into a seamless ownership journey.
Our local expertise and experienced legal team ensure full compliance, protecting you from violations that may lead not only to fines but also to enforced property sales.
Connect with our advisors today and let Habitare Real Estate guide you toward compliant and confident property ownership in Saudi Arabia.
Edited by: Habitare Real Estate ©
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Frequently Asked Questions
What are the allowed and prohibited geographical areas for ownership?
Property ownership for non-Saudis is permitted across all regions of the Kingdom, subject to regulatory controls.
Which categories are eligible to own property in Saudi Arabia?
Eligible parties include non-Saudi individuals, foreign companies, foreign nonprofit entities, and other legal entities approved by the Council of Ministers.
What are the penalties and fines in case of violation?
Providing false or misleading information may result in a fine of 5 percent of the in rem right value, capped at SAR 10 million, or enforced sale.
Companies misrepresenting ownership needs may face fines between 0.5 percent and 1 percent, capped at SAR 2 million.
Obstructing inspectors or failing to remedy violations may lead to graduated warnings and fines up to SAR 500,000.
Failure to update capital ownership data may result in fines up to SAR 1 million.
