The regulations introduce digital identity, registration, and disclosure requirements for foreign individuals and companies seeking to own property in the Kingdom, ahead of the law’s implementation.

Saudi Arabia has published the executive regulations for its Law on Real Estate Ownership by Non-Saudis, outlining the procedures foreign individuals, companies, and nonprofit entities must follow to purchase property in the Kingdom. The regulations, published on July 3, establish the operational framework for implementing the law, including digital identity requirements, registration procedures, and compliance obligations.

Why You Should Care

The regulations provide long-awaited clarity on how foreign buyers and investors will access Saudi Arabia’s real estate market. They set standardized requirements for eligibility, payment methods, ownership registration, and ongoing disclosures, offering a clearer pathway for international capital while strengthening regulatory oversight.

Foreign individuals who are not residents must first obtain a Saudi-issued digital identity, open a local bank account, and register a Saudi mobile number linked to that identity before purchasing property or acquiring other real estate rights. All financial transactions related to property ownership must be completed through electronic payment systems approved by the Saudi Central Bank.

The Details

Foreign companies must register with the Ministry of Investment, disclose their direct and indirect ownership structure, appoint a legal representative with a Saudi-recognized identity, and open a bank account in the Kingdom before acquiring property. Registered companies must also notify the ministry within 15 days of any ownership transfer involving 5% or more of the company or any governance changes that could affect control. Similar disclosure obligations apply to foreign nonprofit organizations and other designated foreign legal entities.

The regulations also establish an electronic portal operated by the Real Estate General Authority, through which applications for property ownership, acquisition of real rights, and related transactions will be processed and linked directly to the Kingdom’s real estate registry.

Saudi companies with foreign shareholders that are not listed on the Saudi stock exchange will be permitted to own property outside designated geographic areas for business operations or employee housing, subject to Ministry of Investment approval. Within designated geographic areas, including Makkah and Madinah, these companies may acquire property without obtaining prior approval from the ministry, in accordance with the provisions of the law.

The regulations also introduce a 2% fee on certain disposals of real estate rights by non-Saudis in Riyadh, Makkah, Madinah, and Jeddah, while exempting several transactions, including inheritances, court-ordered transfers, public interest expropriations, and transfers to public entities or endowments.

To support enforcement, the regulations authorize inspectors to monitor compliance and establish a schedule of penalties for violations. Sanctions include fines of up to 5% of a property’s value, capped at SAR 10 million, for deliberately providing false or misleading information to obtain ownership, in addition to the sale of the property. Escalating fines also apply for failing to disclose required ownership changes or obstructing inspections.

The Ripple

The executive regulations move Saudi Arabia’s foreign property ownership framework from legislation to implementation. By defining operational requirements and compliance mechanisms, they reduce uncertainty for international buyers, developers, and institutional investors evaluating opportunities in the Kingdom’s real estate sector. The measures also reinforce transparency through mandatory ownership disclosures and digital verification, aligning the property market with Saudi Arabia’s broader push toward digital government services and investment reform.

What to Watch

The next milestone will be the rollout of the Real Estate General Authority’s electronic portal and procedural guide, which will determine how efficiently foreign buyers and companies can navigate the application process. Market participants will also be watching how the new requirements influence cross-border investment activity as the foreign ownership regime takes effect.