FAQ About Real Estate Investment in Saudi Arabia

At Habitare Real Estate, we know the real estate world often comes with questions. That’s why these Frequently Asked Questions are here – to give you practical, friendly guidance on real estate in Saudi Arabia.

Whether you are just beginning or already experienced, we are your trusted advisor in navigating the Saudi real estate market.

This page highlights the most important FAQs about real estate investment in Saudi Arabia, covering topics such as legal requirements, property ownership rules, foreign investment opportunities, and insights into the Saudi real estate market.

Key FAQ on Real Estate Investment in Saudi Arabia for foreigners

Our aim is to provide you with clear, actionable answers so you can make confident and well-informed decisions.

We believe your journey into real estate investment – whether in Riyadh, the vibrant heart of the Gulf, in Jeddah, or in emerging projects like NEOM and The Line – should be simple, transparent, and rewarding.

Across the Kingdom, from Dammam and Khobar in the East to Makkah, Madinah, and Jeddah in the West, opportunities are expanding.

Doors are now open for real estate investment for foreigners in Saudi Arabia, and Habitare Real Estate is here to help you make the most of it.

Yes. Under the new 2025 property ownership law, foreigners will be able to purchase real estate across most regions of Saudi Arabia starting January 2026. 
Ownership in Makkah and Madinah will remain available exclusively to Muslim individuals.

Yes, Syrians are allowed to purchase property in Saudi Arabia under the new law that opens real estate ownership to foreigners beginning January 2026.
As with other nationalities, ownership in Makkah and Madinah is reserved for Muslim individuals only.

A Real Estate Transaction Tax (RETT) of 5% applies to all property transfers, for both Saudis and foreigners. Typically, the seller is responsible for payment unless otherwise agreed in the contract.

Yes, foreigners can invest through:

  1. Qualified Foreign Investor (QFI) programs.
  2. Residents and holders of Premium Residency via licensed brokers.
  3. Citizens and residents of GCC countries (since 2025). Total foreign ownership is capped at 49% per company, with a maximum of 10% per individual.
  1. Must hold a valid legal residency (standard or Premium Residency “Green Card”) or invest via licensed entities.
  2. Permitted areas include Riyadh, Jeddah, NEOM, and KAEC, excluding Makkah Al-Mukarramah and Madinah.
  3. Government approvals required (Ministry of Interior, Ministry of Investment).
  4. Legal due diligence, property registration, and title verification are mandatory.
  1. Must hold a valid residency.
  2. Cannot be a government employee.
  3. Investment must be within approved activities by the Ministry of Investment.
  4. An official license and proof of financial capacity are required.
  5. Must comply with labor and tax regulations.
  1. SMEs: SAR 100,000 – 300,000.
  2. Industrial projects: SAR 500,000 or more.
  3. Large-scale projects (e.g., agriculture): SAR 5 million or more.
  1. Real estate in cities like Riyadh and Jeddah.
  2. Stocks and mutual funds.
  3. Islamic sukuk and savings accounts.
  4. SMEs with government support.
  5. Energy and technology sectors under Vision 2030.

The future looks very promising, supported by Vision 2030:

  1. Strong growth in residential and commercial real estate.
  2. Emphasis on sustainable and eco-friendly developments.
  3. Diverse opportunities across housing, tourism, and commerce.

Yes, under certain conditions:

  1. Property value between SAR 4 million and 30 million.
  2. Minimum holding period of 5 years.
  3. Official license from the Ministry of Interior.
  4. Excludes properties in Makkah Al-Mukarramah and Madinah, except