Saudi Arabia property ownership for non-Saudis: the M/14 law, now in force.

Saudi Arabia has historically restricted foreign ownership of real estate to protect national interests and preserve cultural sites. The previous framework, the Law of Real Estate Ownership and Investment by Non-Saudis (Royal Decree No. M/15, issued in 2000), allowed limited ownership for licensed investors, residents with permits and diplomatic entities. It imposed strict conditions, such as a minimum value of SAR 30 million for non-Saudi buy-to-sell or buy-to-let investment property, which had to be sold or let within five years, along with prohibitions in the holy cities.

The new law repeals that 2000 legislation and introduces a more flexible, zone-based approach. It was published in the Official Gazette (Umm Al-Qura) on 25 July 2025, following approval by the Council of Ministers, and entered into force 180 days later. REGA confirmed the system took effect on Thursday 3 Sha’ban 1447 AH, corresponding to 22 January 2026. This shift reflects broader reforms under Crown Prince Mohammed bin Salman to make the Kingdom more appealing to global capital, and it sits alongside the wider opening of the market that has reshaped Saudi property over the past year.

REGA’s announcement is the authoritative reference: the system entered into force on 22 January 2026. The implementing regulations, which set out detailed procedures for registration, zone maps and ownership limits, have since been issued by the Real Estate General Authority (REGA) following the 23 June 2026 Cabinet approval of the geographical zones and implementing regulations.

In practical terms, the headline framework is live and the operational machinery is in place: the Saudi Properties portal is open, the executive regulations are issued, and the Geographic Scope Document setting out the permitted zones was published. Because the granularity of the zone maps determines whether a specific address qualifies, buyers should check the current published status of that document for their plot rather than relying on early summaries.

The law expands access to real estate ownership and related in-rem rights, such as usufruct (the right to use and profit from property), easements and long-term leasehold. It categorises ownership by residency status, entity type and location, which is the structural core of the Saudi Arabia property law for foreigners.

Eligibility is broad but structured, across four tiers:

• Non-Saudi individuals. Both residents and non-residents can acquire property. A legally resident non-Saudi, including a Premium Residency holder, may own one residential property for personal use outside the designated zones, subject to the Makkah and Madinah restriction, plus additional property within zones. Non-residents are confined to designated zones.
• Foreign companies and entities. This includes corporations, non-profits, CMA-licensed investment funds and special-purpose vehicles. They can own for business operations, employee housing or investment, primarily within designated zones.
• Saudi companies with foreign ownership. Companies listed on the Tadawul stock exchange, and CMA-licensed investment funds, have broader access, including for offices and activities, per Capital Market Authority rules. Non-listed companies can own in zones and, where needed, outside them for operational purposes.
• Diplomatic missions and international organisations. These may own official premises on the basis of reciprocity, with approval from the Ministry of Foreign Affairs.

The definition of "non-Saudi" encompasses non-citizens, foreign entities and any others designated by the Council of Ministers.

A core feature is the designated-zone model. The Council of Ministers approves specific geographic areas, on REGA’s proposal, where foreign ownership is permitted. These zones come with maps, maximum ownership percentages per zone, usufruct duration limits and allowable property types, spanning residential, commercial, industrial and agricultural.

The Cabinet approved the geographical zones and implementing regulations on 23 June 2026, and REGA now publishes these details through Saudi Properties. The maps cover approved areas in Riyadh and Jeddah, with separate controls for Makkah and Madinah and other mapped opportunities across the Kingdom. For foreign buyers weighing where to buy property in Jeddah or Riyadh, the zone map is the document that matters most: check the live version against the specific plot, because it determines whether a given address qualifies and which rights and limits apply.

While the law liberalises access, safeguards remain:

• Ownership is generally confined to designated zones, with the exception of residents’ personal residences, where a legally resident non-Saudi may own one home outside the zones.
• In Makkah and Madinah, ownership is restricted to Saudi companies and Muslim individuals, whether residing inside or outside the Kingdom, with CMA-licensed funds and listed entities permitted under conditions. Muslim individuals are not confined to designated zones in the holy cities, a notable liberalisation. Non-Muslims are prohibited entirely.
• The law prohibits acquisitions that violate Sharia principles or national security rules.

These measures protect the sacred sites while allowing controlled economic activity around them.

Disposal fee. Non-Saudis face a fee of up to 5% of the property’s value on sale or disposal, levied by REGA. This sits on top of the standard 5% real estate transaction tax (RETT) applicable to most sales, so foreign buyers should budget roughly 10% in combined transaction taxes and fees, plus registration costs. A pre-publication draft floated tiered rates of 2.5% on residential and 0% on other property, so confirm the final executive regulations for any tiering before underwriting.

Other costs. Buyers should also anticipate registration fees and potential corporate income taxes for entity structures. The exact registration and corporate-tax structures are set out in the implementing regulations.

All acquisitions by non-Saudis must be registered with the competent authority and recorded in the national Real Estate Registration System to be legally valid. Foreign companies and non-profits require prior registration with the designated bodies. The process now runs through the live Saudi Properties portal (saudiproperties.rega.gov.sa), launched as the official platform when the law entered force and integrated with the registration system. Residents apply online; non-residents initiate the process via Saudi embassies and consulates before obtaining a digital identity.

Registration is constitutive of valid ownership, so failure to register renders it ineffective. In practice, the registry is not paperwork to be done later: it is the point at which a non-Saudi’s ownership becomes real.

The law enforces strict accountability:

• A warning or a fine of up to 5% of the property’s value, not exceeding SAR 10 million (about $2.67 million) per violation.
• In cases of fraud, such as providing false information, properties may be forcibly sold at public auction, with prosecution for intentional misrepresentation.
• A specialised REGA committee oversees enforcement, with appeals to the Administrative Court within 60 days.

These penalties are designed to deter speculation and ensure adherence to the rules, which matters for the integrity of the market the law is trying to build.

Compared with the 2000 law, the changes are substantial:

• Broader eligibility. It no longer requires specific licences or minimum investment thresholds for most buyers, and it opens the market to non-residents and non-profits.
• Zone-based flexibility. It shifts from blanket restriction to targeted zones, allowing more property types and more in-rem rights.
• Holy-city access. It opens ownership in Makkah and Madinah to Muslim individuals, resident or abroad, and qualifying entities, which was previously near-impossible.
• No purpose restrictions. Property can be held for any use, not only tied to a business or a residence permit.

These updates make the market more investor-friendly while retaining the controls that define it. The wider opening sits alongside how Premium Residency has reshaped demand in the Kingdom, and is part of the same Vision 2030 arc.

This law positions Saudi Arabia as a competitive player in the Gulf real estate landscape, potentially complementing markets like Dubai by attracting long-term, strategic investors. Buyers in confirmed growth zones can target income alongside appreciation, with Riyadh gross residential yields running roughly 4 to 7% in 2026, villas and top-prime districts at the lower end and well-located studios and one-beds at the higher end, per Global Property Guide. For a closer look at where that demand is concentrating, see our guide to the top off-plan property projects to invest in across the Kingdom.

With the framework live, success now depends on reading the zone detail and the cost stack honestly. Investors should take three practical steps:

1. Consult local legal experts for compliance and plot-level eligibility.
2. Check the Geographic Scope Document for the published zone boundaries that govern a specific address.
3. Factor the full cost stack, the up-to-5% disposal fee plus the 5% RETT, roughly 10% combined, into any underwriting.

For the very wealthiest individuals and funds, opportunities in the mega-projects could deliver meaningful returns over a 10-plus-year horizon. The law is best read not as a quick trade but as the legal scaffolding for a market that is still being built. To see the live inventory now coming to market under this framework, browse developments across Saudi Arabia.

With the framework now in force, the next question is where to deploy. Explore the top projects for investment in Saudi Arabia, and read our companion analysis on how the Kingdom opened its property market to foreign buyers, and whether it is worth investing now.