Saudi Arabia's New Foreign Property Ownership Law (2025): Complete Guide for Muslims

Saudi Arabia has approved a groundbreaking new law that enables foreigners to own real estate in most of the Kingdom. This represents a significant shift in Saudi's approach to foreign investment and opens new opportunities for Muslims seeking Hijrah to the blessed land.

TL;DR: The law allows non-Saudis to own residential, commercial, industrial, and agricultural properties throughout most of the Kingdom. Implementation details, geographic scope, and fees will be finalized in executive regulations expected soon.

What Changed vs. Before?

Historically, non-Saudis faced narrow routes to property ownership in Saudi Arabia:

Limited options: Only long leases or case-by-case approvals
Restricted areas: Special rules around Makkah and Madinah
Complex process: No clear framework for foreign ownership

The 2025 law changes everything by creating a new framework that explicitly allows foreign natural persons and companies to own real estate across Saudi Arabia, with only limited security-related exclusions.

Sources: Saudi Gazette published the official English text of the law; REGA's Arabic draft executive regulations were posted for public consultation.

Article-by-Article Breakdown

The article numbers and wording below follow the English text published by Saudi Gazette (official translation). Each section explains what the article means in practice.

Article 1 — Definitions

Sets the vocabulary: who is a "non-Saudi," what counts as "real estate," and what "ownership" and "real rights" mean. This matters because later articles grant these rights to both individuals and entities.

Article 2 — Who Can Own

Natural persons (individuals) who are not Saudi nationals can own property inside the approved geographic scope
Non-Saudi legal entities (foreign companies) can also own, subject to relevant licenses and disclosure rules
Foreign governments and international organizations may own for embassy/mission purposes under reciprocity

Article 3 — Geographic Scope

Ownership is permitted throughout the Kingdom except in areas that the state excludes for security or sovereignty reasons:

Military zones
Border belts
Strategic security areas

The specific map and exceptions are finalized in the executive regulations and related ministerial decisions.

Article 4 — Types of Property and Rights

Covers residential, commercial, industrial, agricultural land and buildings. Recognizes full ownership and "real rights" (like usufruct and musataha) so projects and structured deals are possible.

Article 5 — Use and Compliance

Owners must use the property according to:

Zoning regulations
Planning requirements
Environmental rules

Breaches can trigger penalties or forced sale.

Article 6 — Transfers and Inheritance

Non-Saudis can sell, gift, or inherit property under Saudi law. Transfers follow standard notarization and land-registry procedures.

Article 7 — Licenses for Entities

Foreign companies must hold proper investment licenses and meet beneficial-owner disclosure requirements. This means coordinating with MISA (Ministry of Investment) and REGA's digital systems.

Article 8 — Registers and Digital Platform

Transactions must be recorded in the national real estate registry and through approved digital portals. The draft regulations say access will be via Nafath (National Single Sign-On).

Article 9 — Executive Regulations

Empowers REGA to issue the executive regulations that set:

Procedures
Required documents
Geographic scope
Fees

The public consultation draft (Arabic) published in July 2025 gives a preview of what's coming.

Article 10 — Penalties and Remedies

If an owner violates the rules, authorities can:

Void or unwind the transaction
Levy fines
Order disposal of the asset

What the Draft Executive Regulations Say

These items are from REGA's draft regulations posted on the official consultation portal (Arabic). They may adjust in the final version but show the direction.

1) Who Can Apply and How

Individuals (non-residents):

Digital Saudi identity (via Absher)
Saudi bank account
Local mobile number to transact on the portal

Companies:

MISA investment license
Full UBO disclosure
Saudi bank account to transact

2) Cities and Fees

Residential Transaction Fees:

2.5% in Riyadh, Jeddah, Makkah City, and Madinah City
0% for residential deals outside those four cities
0% for commercial, industrial, agricultural deals nationwide

Important Note: The presence of Makkah and Madinah in the fee table signals that ownership will be allowed there under the new regime, subject to final conditions. This represents a major easing compared to earlier practice.

3) Excluded and Sensitive Areas

Military, security, and border areas remain restricted
Additional micro-zones near strategic facilities can be excluded by competent authorities

4) Anti-Abuse Rules

Straw ownership (buying in someone else's name) is prohibited
Authorities can suspend or cancel permissions for AML/CFT concerns
Force disposal if misuse continues

Can Muslims Own in Makkah and Madinah Now?

This is a crucial question for many Muslims considering Hijrah to Saudi Arabia:

The law itself is framework-based and doesn't list city-by-city details
The draft executive regulations list Makkah City and Madinah City with a 2.5% residential fee
This indicates permission with conditions rather than prohibition
Final confirmation comes in the published executive regulations

For faith-first relocation planning, start with our comprehensive guide: Hijrah to Saudi Arabia

How This Compares to Premium Residency

Key Point: You do NOT need Premium Residency to own property under the new law. It's a standalone right once regulations are in force.

Premium Residency still helps with:

Family stability
Sponsor-free work and business ownership
Easier long-term planning

Learn more about Premium Residency:

Step-by-Step Process: Individual Buyer

Based on the draft regulations and current Saudi digital procedures. Final steps may change on publication.

1. Create Digital Access

Set up Nafath/Absher account
Complete identity verification

2. Financial Setup

Open a Saudi bank account
Get a local mobile number

3. Property Search

Search properties within permitted areas once the official map is live
Verify zoning and restrictions

4. Eligibility Checks

Complete E-KYC inside the real estate portal
Verify all requirements are met

5. Transaction Process

Sign and notarize via e-notary
Deed is registered in the national registry

6. Payment

Pay applicable fees:
- Standard RETT where relevant
- New non-Saudi residential fee (2.5% in listed cities)

7. Completion

Title issued and visible in your digital wallet/registry

Step-by-Step Process: Foreign Company

1. Licensing

Obtain MISA license for your activity and entity type
Ensure compliance with sector requirements

2. Registration

Register UBOs (Ultimate Beneficial Owners)
Complete tax and social profiles
Meet all disclosure requirements

3. Financial Setup

Open Saudi bank account
Onboard to REGA's portal

4. Transaction

Transact and register property
Follow zoning and sector rules

Need help structuring a compliant entity? Book a consultation

Frequently Asked Questions

Q: When does this take effect?
A: The law is passed. The executive regulations and official geographic scope are the trigger for practical buying. The draft was posted in July 2025 and the final version is expected soon.

Q: Are there places I still cannot buy?
A: Yes. Military, security, and some border areas are excluded. Micro-exclusions near strategic sites may also apply. The final map will clarify all restrictions.

Q: Can I rent out my property?
A: Yes, subject to tenancy laws and municipal rules. Register leases on the official platform once enabled for non-Saudis.

Q: Do I need a local partner?
A: For property ownership, no. For operating a business, follow normal company-law and licensing through MISA and sector regulators.

Q: Do I need Premium Residency to own?
A: No. The new law grants ownership directly. PR remains useful for other long-term life and work privileges.

Sources and Official References

Full English text of the law (Saudi Gazette)
Draft Executive Regulations (Arabic), REGA via National Consultation Portal "Istitlaa"
Context and scope from regional coverage explaining designated-area approach
MISA (licensing for foreign entities)

Want Help Aligning This with Your Hijrah Journey?

We can map your family's needs to the most suitable pathway:

Hijrah to Saudi Arabia - Complete relocation guide
Premium Residency: Types - Understand your options
Is Premium Residency Worth It? - Cost-benefit analysis
Book a Consultation - Get personalized guidance

Final Thoughts

This new law represents a significant opportunity for Muslims seeking to establish roots in Saudi Arabia. Whether you're planning Hijrah, looking for investment opportunities, or want to own property in the blessed land, the framework is now in place.

Remember: The law provides the framework, but implementation details are still being finalized. Stay updated through official channels and consider how this fits into your broader Hijrah strategy.