Major Policy Shift: Real Estate Ownership for Foreigners in the Kingdom
In a landmark move to boost economic development and attract global capital, the Ministry of Investment of Saudi Arabia has announced a policy allowing foreign investors to own and sell real estate in Saudi Arabia—subject to a well-defined set of conditions. This progressive shift is part of the Kingdom’s wider efforts under Vision 2030 to diversify its economy, develop the non-oil sector, and encourage long-term international partnerships in real estate and urban infrastructure.
By formalizing foreign real estate ownership outside Makkah and Madinah, Saudi Arabia is sending a strong message to international investors: the market is open, transparent, and designed to support responsible, long-term investment.
Read: KSA Real Estate Predictions 2025
Comprehensive Guidelines for Foreign Ownership in Saudi Arabia
The Ministry of Investment has outlined detailed eligibility requirements and conditions that foreign individuals and companies must meet to acquire real estate in the Kingdom.
1. Location-Based Restriction
Foreign investors are strictly prohibited from owning property in the cities of Makkah and Madinah, the two holiest cities in Islam. The permitted real estate purchases must be located outside these religious zones to ensure the sanctity of these areas remains preserved.
2. Investment-Only Intent
Properties acquired by foreign entities must be used for investment purposes only. Purchases with the sole aim of commercial speculation or flipping properties for short-term gain are not allowed. This measure ensures that real estate investments contribute meaningfully to long-term development and economic activity.
3. Authorized Property Usage
Foreign companies may seek approval to own real estate in Saudi Arabia for the following purposes:
- Corporate offices and headquarters
- Executive and staff accommodation
- Warehouses and logistics hubs
- Factories and industrial infrastructure
- Private residences (limited to company personnel)
Each application must clearly indicate the property’s intended use to ensure regulatory alignment and economic relevance.
Read: Saudi Arabian Property Market Opens to Foreign Investors
Requirements for Real Estate Developers
Foreign real estate development firms aiming to implement or market a project in Saudi Arabia are subject to additional conditions:
- All developments must be outside Makkah and Madinah
- A certified engineering report must be submitted, issued by a firm registered with the Saudi Council of Engineers
- The minimum total value of land acquisition and construction must be SAR 30 million
- The project must be fully developed and operational within five years of approval
These requirements are designed to attract experienced, committed developers capable of delivering substantial economic value and infrastructure improvements.
Streamlined Application and Approval Process
The Ministry of Investment has simplified the process for foreign investors to obtain real estate ownership approval. Best of all, the process is entirely free of charge, and applications can be submitted through the Ministry’s digital e-services portal.
Required Documentation:
- A copy of the official property deed
- A municipal building permit, or an authorized statement indicating the intended land use, or a municipality approval letter
Upon submission, investors can expect a decision within five business days, making this one of the region’s most efficient and business-friendly real estate regulatory systems.
Economic and Strategic Objectives of the New Law
This updated real estate ownership policy serves multiple strategic goals:
- Expand foreign direct investment (FDI) in the Saudi real estate market
- Stimulate property development in regions outside Makkah and Madinah
- Promote sustainable land use and industrial growth
- Support the creation of housing, infrastructure, and corporate facilities across the Kingdom
- Align international investor activity with the Vision 2030 blueprint for national transformation
The move underscores Saudi Arabia’s ambition to become one of the world’s most competitive and diversified economies, driven by innovation, urban development, and transparent regulation.
Read: The Real Estate General Authority in Saudi Arabia
Why This Matters for Foreign Investors
For global investors, this policy presents a significant opportunity to gain access to one of the Middle East’s fastest-growing property markets. With clear legal guidelines, minimal red tape, and a high demand for commercial and industrial infrastructure, Saudi Arabia is positioning itself as a hotspot for real estate expansion.
Investors can now:
- Secure commercial and residential property for strategic business use
- Invest in large-scale industrial zones and warehouse development
- Develop or co-develop real estate projects in alignment with national priorities
With zero application fees, digital submission systems, and a quick approval cycle, entering the Saudi market has never been easier or more appealing.
Real Estate Saudi: Your Premier Partner for Investment in the Kingdom
At Real Estate Saudi, we specialize in empowering foreign investors with the expertise, compliance support, and insight needed to make confident property acquisitions in Saudi Arabia.
Whether you’re planning to purchase executive housing, establish your regional headquarters, or develop a logistics hub—our team ensures your transactions are legally compliant, strategically sound, and tailored to your business objectives.
We assist with:
- RETT and regulatory compliance
- Document preparation and approvals
- Due diligence and valuation support
Book a free consultation today and explore the most promising investment zones across Saudi Arabia—outside Makkah and Madinah.
Certain FAQs
Can foreigners buy real estate in Saudi Arabia?
Yes, foreigners are allowed to buy real estate in Saudi Arabia, provided the property is located outside Makkah and Madinah and the purpose is for approved investment use, not speculation.
What are the rules for foreign ownership of property in Saudi Arabia?
Foreign property ownership is regulated by the Ministry of Investment, which requires that investors register through the e-services portal, clearly state the property’s use, and avoid restricted areas like Makkah and Madinah.
What types of real estate can foreign investors purchase in Saudi Arabia?
Foreign investors can acquire commercial properties, industrial facilities, corporate offices, staff housing, and warehouses, as long as they meet compliance standards and location restrictions.
Is buying commercial property in Saudi Arabia allowed for foreigners?
Yes, buying commercial property in Saudi Arabia is permitted for foreign investors, as long as it’s outside Makkah and Madinah and approved by the Ministry of Investment.
How do I apply for property ownership as a foreign investor in Saudi Arabia?
Applications must be submitted through the Ministry of Investment’s e-services portal with documents like the property deed and land use permit. Approval is typically granted within a few business days, with no application fee required.
