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The National
a day ago
- Business
- The National
What foreigners need to know about buying property in Saudi Arabia
Foreigners will be able to buy real estate in designated areas in Saudi Arabia from January 2026. Housing Minister Majed Al Hogail told the Saudi Gazette on Wednesday that 'ownership will be permitted within specific geographic areas − particularly in the cities of Riyadh and Jeddah − with special requirements for ownership in Makkah and Madinah'. In January, the kingdom allowed foreigners to invest in publicly listed local companies that own real estate in Makkah and Madinah. Saudi Arabia has taken several measures to boost its attractiveness as a global investment destination as part of its Vision 2030 plan to wean the economy off its dependency on oil revenues. Here's what you need to know about buying property in Saudi Arabia: Where can foreigners buy property in Saudi Arabia? Starting January 2026, international buyers will gain access to the Saudi real estate market within designated areas. While Riyadh and Jeddah are likely to be prioritised for foreign ownership, Makkah and Madinah will have specific conditions or restrictions. Not all areas will be open to foreign ownership. The Real Estate General Authority, the regulatory body for real estate in Saudi Arabia, will define the permitted zones and their conditions in the forthcoming executive regulations. 'The law includes geographic restrictions to maintain cultural, religious and regulatory sensitivities. These measures aim to balance international investment with national interests and community integrity,' says Amar Hussain, associate partner, research – Middle East, at real estate consultancy Knight Frank. The law is expected to permit ownership of various asset types, including residential and commercial properties and possibly agricultural land, subject to specific location-based conditions and oversight, Mr Hussain adds. Most of Saudi Arabia's future projects are in Riyadh and Jeddah as the kingdom prepares for the Fifa World Cup in 2034. In addition, the 2029 Asian Winter Games will be another opportunity to showcase the development work in the kingdom, according to Junaid Ansari, director of investment strategy and research at Kamco Invest. Who can buy under the new scheme? The new law is understood to include both foreign residents and non-resident foreigners, effectively opening the kingdom to a global investor base, Matthew Green, head of research at CBRE Mena, says. In other similar moves within the region − namely the UAE, Qatar and Oman − this has led to the start of a new real estate cycle and subsequent positive value growth in the preceding years, as 'improved ownership title, new regulations, bigger addressable market and wider source markets' help to transform the real estate landscape, he explains. Why buy in Saudi Arabia? The local demand is significant and there is an undersupply in the residential sector. Also, prices in Saudi Arabia are still broadly lower than similar property prices in the UAE, according to Mr Ansari. House prices in the designated international investment zones are likely to perform better, or grow faster than the rest of the market, where the rate of house price growth is likely to slow as domestic households move into longer holding patterns before they are able to transact, according to Faisal Durrani, head of research Mena at Knight Frank. Can foreigners buy property in the kingdom today? International buyers and investors are already able to access the property market in the kingdom under the property-ownership linked premium residency visa, which was launched in January 2024, Mr Durrani says. The conditions attached to this are a minimum spend of 4 million Saudi riyals ($1.1 million) and that the properties must be fully completed and mortgage-free, he informs. Separately, this January, laws were amended to permit international investors to access property markets in the holy cities of Makkah and Madinah through listed property development companies. 'In the wake of Vision 2030 and the subsequent giga project announcements, demand from international buyers for homes in the kingdom has been building on the sidelines,' Mr Durrani says. 'This demand is strongest among global Muslim high-net-worth individuals who are non-residential in the kingdom. In fact, 86 per cent of global Muslim HNWIs are keen to own a home in the kingdom, with the majority focused on the Makkah and Madinah.' Mr Green of CBRE says ownership in the kingdom is currently restricted to those participating in the premium residence scheme through licensed foreign developers and other indirect ownership vehicles, including real estate funds or through shares in a publicly listed company. What can you buy? The new law is expected to permit a broader scope for foreign ownership, with individual units and buildings across designated areas, Mr Green says. 'Opening the market up to international buyers and investors is something that has been long anticipated,' Mr Durrani says. This will facilitate greater international investment, while ensuring that Saudi nationals aspiring to own a home are not necessarily competing directly with global buyers Faisal Durrani, head of research Mena, Knight Frank 'This is an exceptionally positive move and will facilitate greater international investment in the real estate market, while ensuring that Saudi nationals aspiring to own a home are not necessarily competing directly with global buyers.' What hurdles are investors likely to face? The biggest hurdle would be the residency issue, but the kingdom is expected to ease the golden visa programme and other ways to attract talent and people, says Mr Ansari from Kamco Invest. 'Even the UAE opened its market very gradually. We believe the UAE's experience would also play a key role in drafting future residency rules,' he reckons. The executive regulations defining ownership procedures, eligibility and restrictions are still pending in the kingdom. 'It is highly likely that the Real Estate General Authority regulations will include updated terms and fees related to acquiring the new property title, and that some of the historical taxations may be amended to encourage foreign investors to enter the market,' CBRE's Mr Green says. 'However, preparations have already begun, with REGA now working to finalise the finer details of the law, including clarification on the designated areas, related restrictions, refinement of the registration process, and related fees.' However, the Saudi real estate market is still maturing, and processes may not be as streamlined as in neighbouring countries, according to Knight Frank. Will foreign ownership make house prices more unaffordable? The decision to allow international buyers access to real estate markets in the kingdom in specific investment zones is likely to be confined to the major giga projects, which will have the impact of creating a two-tiered market – one for international buyers and one for domestic buyers, says Harmen de Jong, regional partner – head of consulting at Knight Frank. As a result, prices within giga projects are likely to accelerate faster than the rest of the more mainstream market, he estimates. The acceleration of house prices in Saudi Arabia over the past five years has been 'exceptional', with prices for apartments in Riyadh, for instance, up by nearly 82 per cent since 2019. However, salaries have not risen by a commensurate level and affordability challenges have begun to emerge, according to Knight Frank. Mr Ansari from Kamco Invest also expects property supply to 'increase gradually' as regional and international real estate companies boost their presence in the kingdom, similar to the gradual growth recorded in the UAE and other GCC countries that opened their real estate sector. Is property tax levied in Saudi Arabia? Historically, Saudi Arabia has not imposed property taxes in the same way as some other countries, but this may change with the new regulations, according to Mr Hussain from Knight Frank. Detailed provisions regarding legal protections, rights of inheritance and dispute resolution mechanisms are not yet available. More clarity will come with the release of executive regulations, he adds. Saudi Arabia levies a 5 per cent real estate transaction tax, which is applied to the ownership transfer of an asset based on the property's sale value. This is normally paid by the seller in advance, CBRE's Mr Green says. However, there are multiple exceptions, such as for inheritance, when the transfer is to a first degree relative. Similarly for other government and special interest cases, the tax is sometimes exempted. 'There is also 15 per cent VAT, which is sometimes applied to the sale and lease of commercial properties (including office, retail and industrial properties), but residential properties are exempted,' he says. 'Other fees are also applied, including title deed registration, service connection fees, permitting fees, etc. 'Finally, there is a capital gains tax that can be applied on the sale of a business asset (real estate, shares, etc.) if it is traded for a profit over and above the original purchase value. The application of this tax can vary, with a 2.5 per cent zakat or 20 per cent tax on ordinary income. However, the CGT is not currently being applied to an individual buying or selling property.'
Arab Times
2 days ago
- Business
- Arab Times
Now, Saudi Arabia Will Allow Expats To Own Properties
RIYADH, July 11: In a landmark policy shift aimed at boosting foreign investment, Saudi Arabia will permit non-Saudis to own real estate in designated areas across the Kingdom beginning January 2026. The move comes under a newly approved property ownership law, marking a significant milestone in the country's broader strategy to diversify its economy and strengthen the real estate sector. The decision was endorsed by the Saudi Cabinet and announced by Majed Al-Hogail, Minister of Municipal, Rural Affairs and Housing and Chairman of the Real Estate General Authority, who described the legislation as a cornerstone of the Kingdom's ongoing real estate reform program. Under the new framework, foreign nationals will be permitted to purchase property in specific zones, primarily in Riyadh and Jeddah, while ownership in the holy cities of Mecca and Medina will be subject to stringent regulatory conditions and additional oversight. 'The updated law is designed to expand the real estate supply, attract international investors and developers, and stimulate foreign direct investment in the Saudi market,' Al-Hogail said, adding that the legislation includes procedural safeguards to protect national interests and ensure the integrity of the housing sector. The Real Estate General Authority will play a central role in implementing the law. It will define the geographical zones open to foreign buyers and draft the accompanying executive regulations. These regulations will be made available for public consultation via the 'Istitlaa' platform within 180 days of the law's publication in the official gazette. The guidelines will detail eligibility requirements, application procedures, and compliance mechanisms, ensuring a balanced approach to economic liberalization and social responsibility. The law complements existing frameworks such as the Premium Residency Law and property ownership rights extended to GCC citizens, further reinforcing Saudi Arabia's commitment to regulatory modernization under the Vision 2030 transformation plan. By opening its property market to global investors, the Kingdom seeks to position itself as a competitive real estate destination while addressing domestic housing demand and fueling long-term economic growth.
Time of India
3 days ago
- Business
- Time of India
Saudi property buying rules: What expats and investors need to know
Foreigners will be allowed to buy property in key Saudi cities like Riyadh and Jeddah from January 2026 under new regulations aimed at boosting investment and diversifying the economy/Representative Image TL;DR: Saudi Arabia to allow foreigners to buy property from January 2026 in designated zones like Riyadh and Jeddah. REGA will define eligible areas and publish detailed rules within 180 days. Mecca and Medina remain restricted to long-term leases only (not ownership) Valid Iqama or Premium Residency required to purchase. 5% real estate transaction tax applicable on purchases. Foreign companies and individuals can both buy. Property purchases to be completed via digital platforms like Absher and registered under REGA. Who Can Buy Foreign individuals and companies will be allowed to buy property. You'll need to meet specific conditions, but you won't need to be a Saudi citizen. If you're a Premium Residency holder or a GCC national, you're already allowed to own property under certain conditions. Where You Can Buy The law will allow purchases in places like Riyadh, Jeddah, and other areas that will be announced soon. You can't buy property in Mecca or Medina, but long-term leases (up to 99 years) may be possible in those cities. The Real Estate General Authority (REGA) will release the final list of areas and rules before January 2026. They will also open a public feedback process on a platform called Istitaa. How to Buy Property as an Expat Here's a basic outline of how the process is expected to work: Check your eligibility — you'll likely need a valid residency permit (Iqama) or a business license. Choose a property in an approved area. Apply for a permit through Saudi's official digital platforms like Absher. Get clearance from REGA and possibly from the Ministry of Interior or Investment. Sign the deal and register the ownership. Pay a 5% property transaction tax. Keep in mind: rules for financing, taxes, and other approvals may vary depending on the zone and the type of property. Why This Matters Real estate now makes up a growing part of Saudi Arabia's economy. The new law is meant to boost that even more by attracting outside buyers and encouraging development in major cities. It also brings Saudi rules closer to what's already allowed in countries like the UAE and Qatar, where expats have been able to buy property for years. Things to Keep in Mind You can't buy just anywhere. Specific zones will be named. Mecca and Medina remain off-limits for freehold ownership. Government approval is a must before completing a deal. The law starts in January 2026, but the details will come out earlier. Digital tools like Absher will be used to handle most of the paperwork. FAQs Q. Can foreigners buy property in Saudi Arabia now? Not yet. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3.5, 4.5 BHK Homes starting at ₹4.89 Cr.* Hero Homes Learn More Undo The law takes effect in January 2026. Q. Can I buy in Mecca or Medina? No, but you may be able to lease long-term. Q. Do I need to live in Saudi Arabia to buy? Yes. You'll likely need a valid Iqama or Premium Residency. Q. Are companies allowed to buy property too? Yes. Foreign companies can buy property in approved zones. Q. Is a mortgage possible? It might be, but most expats pay in cash. Saudi banks have strict lending rules. Q. What taxes do I have to pay? There's a 5% real estate transaction tax on most purchases.
The National
3 days ago
- Business
- The National
Saudi Arabia opens doors for foreigners to buy property as it seeks to attract investors
Saudi Arabia has approved a law that will allow foreigners to buy property in specific zones as it seeks to attract international investors and boost its economy. Non-Saudis will be able to own property in designated areas in Riyadh and Jeddah, with 'special requirements' for ownership in Makkah and Madinah, the state-run Saudi Press Agency (SPA) said this week. The move will 'contribute to raising the real estate supply by attracting investors and real estate development companies to the Saudi market', Majed bin Abdullah Al-Hogail, Minister of Municipal Rural Affairs and Housing, said in the SPA report. The updated rules will come into effect in January 2026 and the Real Estate General Authority will be responsible for proposing the areas where non-Saudis can own properties. The authority will present the executive regulations of the system on the Estitlaa platform within the next six months. The decision is likely to benefit companies who could invest in apartments or villas to accommodate their staff as an alternative to expensive hotel stays. It is also expected to give established expats the opportunity to buy a home in the kingdom. Saudi Arabia has already taken several measures to boost its attractiveness as a global investment destination, as part of its Vision 2030 plan to wean the economy off its dependency on oil revenue. In January, the kingdom said it would allow foreigners to invest in publicly listed local companies that own property in Makkah and Madinah, in a step aimed at funnelling international capital into the sector. Saudi Arabia's latest move comes after cities such as Dubai, Abu Dhabi and Doha designated areas where overseas investors can buy property. This month, Saudi Arabia also introduced a work permit classification system that recruiters say will introduce more flexibility in hiring high-skilled expats and attracting global talent.
Khaleej Times
3 days ago
- Business
- Khaleej Times
New Saudi Arabia real estate law: Foreigners can own property from January 2026
In a landmark decision on July 8, the Saudi Cabinet approved an updated system that will allow non-Saudis to own properties in the Kingdom from January 2026. The new system is part of ongoing reforms aimed at boosting the real estate sector and attracting foreign direct investment. The announcement was made following a Cabinet session chaired by King Salman bin Abdulaziz Al Saud, with the Crown Prince also extending support for the decision. Recommended For You The update is designed to increase real estate supply and encourage international developers and investors to enter the Saudi market. Foreign ownership will be permitted within defined geographic zones, particularly in Riyadh and Jeddah, subject to specific conditions in sensitive areas such as Makkah and Medinah. Stay up to date with the latest news. Follow KT on WhatsApp Channels. The Real Estate General Authority will define the geographical boundaries and publish the implementing regulations within 180 days on the Estithaa platform (official Umm Al-Qura Gazette). These regulations will outline the procedures, requirements, and safeguards for foreign ownership, ensuring alignment with economic and social goals. Aligns with existing regulation The new system will also align with the Premium Residency Programme (Iqama) and the regulation of real estate ownership by Gulf Cooperation Council (GCC) citizens, which permits cross-border property ownership for investment and residential purposes. A residency system launched in 2019 allowed eligible foreigners to live, work and invest in Saudi Arabia without a local sponsor (kafeel), marking a major shift from the traditional sponsorship system. Reduce dependency on oil This move marks a major step in opening Saudi Arabia's real estate market to global investors, reinforcing the Kingdom's broader Vision 2030 objectives. Saudi Vision 2030 is a strategic plan launched in 2016 by Crown Prince Mohammed bin Salman to diversify Saudi Arabia's economy, reduce its dependency on oil, and transform the Kingdom into a global investment powerhouse and dynamic society. Target sector Increase non-oil government revenue from SAR163 billion to SAR1 trillion Raise tourism contribution to GDP from 3 per cent to 10 per cent Attract 100 million tourists annually by 2030 Grow the Public Investment Fund (PIF) to over $2 trillion in assets Localise military spending from 2 per cent to 50 per cent Create jobs in non-oil sectors and reduce unemployment to 7 per cent Increase women's participation in the workforce to 30 per cent or more Enhance digital infrastructure and make Saudi a tech hub Projects under Vision 2030 Neom – A $500 billion futuristic mega-city on the Red Sea The Line – A smart, car-free linear city within Neom Red Sea Project – A luxury tourism destination with sustainable design Qiddiya – A massive entertainment and sports city near Riyadh Diriyah Gate – A cultural and historical development around the birthplace of Saudi Arabia
