Saudi Arabia has published details of its new property ownership law for foreigners in the official gazette Umm Al-Qura, with implementation set to begin 180 days from Friday. The law, approved by the Saudi cabinet in early July, allows foreign individuals and businesses to own property in designated areas across the kingdom.
Under the new regulations, only Muslim foreigners will be permitted to buy property in holy cities like Mecca and Medina. The Real Estate General Authority and the Council for Economic and Development Affairs will determine specific zones where foreign ownership is allowed, along with ownership limits and duration.
Diplomatic missions and international organizations may purchase property for official use but must obtain a No Objection Certificate (NOC) from the Ministry of Foreign Affairs. All foreign buyers must register before purchasing and pay a 5% transfer fee on transactions.
Strict penalties include fines up to 10 million Saudi riyals for fraud, with authorities empowered to confiscate proceeds from illegal sales. A dedicated committee will handle violations, and appeals can be filed within 60 days of any decision.
Further guidelines on geographical boundaries and conditions will be issued within six months. The move aims to regulate foreign investment in real estate while protecting Saudi Arabia’s cultural and religious sites.
