If you are thinking of investing in property abroad, now Saudi Arabia can also be included in your list. Saudi Arabia has officially opened its real estate market for foreign nationals and companies. This major decision has been taken for the economic development of the country and it is an important part of the Vision 2030 scheme. Its purpose is to improve the rest of the area by reducing the dependence on oil.
What does the new law say?
According to this new law issued in Umm al-Kura Gazette on 25 July 2025, foreigners can now buy property in many parts of Saudi Arabia. This law will be applicable 180 days after its light date.
Who can buy property?
Foreign resident – Those who are legally living in Saudi Arabia can buy a residential property. But you can buy property outside Mecca and Medina and only for personal use.
foreign companies – Foreign companies running business in Saudi can buy property anywhere for their operations or employees.
Embassy and international organization: After government approval, they can buy property for their office work.
Strict rules in Mecca and Medina
There is still strictness on buying property in both these holy cities. B non-Muslims are not allowed to buy property for personal use here. Muslims are also owned in very limited and controlled conditions. The government has clearly stated that these restrictions have been imposed due to religious and cultural reasons, so that the sanctity of these sites will remain.
How many types of property rights?
This law consists of many other rights other than completely ownership.
Usufruct rights: Meaning you can use and benefit a property, but will not be the owners.
Lease Agreement: Small and long may be for long.
Registration, fees and punishment
All foreign buyers will have to register their assets in the National Real Estate Registry. Property transfer will be charged up to 5%. A fine, seizure or legal action of up to 1 crore Saudi riyal (about 22 crore rupees) can be taken for giving wrong documents or violating the rules.
Relief to existing owners
Foreigners who already own property in Saudi Arabia will remain their rights. Also, citizens of Gulf countries (GCC) are now allowed to buy property in Mecca and Medina, which was not possible earlier.
When will the rules release
The government may issue detail rules and process in the next six months. In which area can foreign properties be purchased. How to buy, on which conditions you can buy property. Which documents will be necessary, this list will also be released. Foreign investors have been advised to keep an eye on the instructions coming forward. So that, they can take advantage of this new opportunity properly.