Introduction: A Historic Shift in the Saudi Real Estate Market
Saudi Arabia is witnessing an unprecedented legislative transformation in the real estate sector. After years of careful study, the state has opened the doors of property ownership to non-Saudis — resident individuals, investors, and companies — within a clear regulatory framework that balances attracting foreign investment with protecting citizens' interests.
We wrote this guide to be a comprehensive, detailed reference for anyone considering ownership: What is the new system? Who is eligible to own? What are the permitted geographic zones in each city and their districts? What about Makkah, Madinah, and the rest of the Kingdom? What fees and taxes exactly will you pay? And how is the deed transfer and ownership registration done in your name? We will answer all of this in detail.
First: What Is the Non-Saudi Property Ownership System?
It is the updated regulatory framework that governs the ownership of properties and the related real rights within the Kingdom by non-Saudi individuals, foreign companies, and entities.
Key Dates
The system was issued in its updated form by Royal Decree No. (M/14) dated 19 Muharram 1447H, corresponding to 14 July 2025, and consists of 15 articles. The system then came into effect as of 22 January 2026. On 23 June 2026, the Council of Ministers approved the executive regulations and adopted the geographic zones document defining the areas where ownership is permitted.
The Official Portal
All ownership procedures are carried out electronically via the government "Saudi Real Estate" (Aqarat) portal, which enables eligibility verification, browsing the approved geographic zones, and completing transactions and linking them to the real estate registration system. A supervisory committee of 13 government entities oversees the system's implementation.
Second: Who Is Eligible to Own? (Categories and Conditions)
The system distinguishes between several categories, each with its own conditions:
1. The Legal Resident (Foreign Individual)
A resident holding a valid residency permit is permitted to own only one residential property for the purpose of private housing for themselves and their family, after obtaining the approval of the Ministry of Interior. Conditions typically include: a valid resident ID with a unified number, proof of financial solvency and a legitimate income source within the Kingdom, and a record free of serious violations along with passing the security check.
2. The Foreign Investor (Natural or Legal Person)
Permitted to own the property necessary to practice their licensed professional, craft, or economic activity, including housing for themselves and their workers, after the approval of the licensing authority. Real estate development requires a minimum cost and a specific investment plan.
3. Companies and Funds
Non-Saudi companies established under the Companies Law, companies listed on the financial market, and investment funds are permitted to own within the geographic zone according to the financial market regulations.
4. Premium Residency Holders
They enjoy broader ownership rights including residential, commercial, and industrial properties in most cities of the Kingdom (except freehold ownership in Makkah and Madinah). Among the paths qualifying for premium residency: purchasing a residential property worth no less than 4 million SAR, owned freehold and free of mortgages.
5. GCC Citizens
Treated the same as Saudi citizens regarding ownership (with previously acquired rights preserved).
6. International Bodies and Diplomatic Missions
According to the principle of reciprocity and with the approval of the Ministry of Foreign Affairs.
Third: The Approved Geographic Zones in Detail
This is the core of the system: ownership is permitted only within specific geographic zones approved by the Council of Ministers, with their detailed maps displayed on the "Saudi Real Estate" portal. Here are the most prominent zones:
Riyadh City Zones
Centered around major projects and the financial and entertainment infrastructure, including: Qiddiya, New Murabba, the Sports Boulevard and the Arts District, Diriyah Gate, King Salman Park, Sedra, King Abdullah Financial District (KAFD), King Salman International Airport, and transit-oriented development sites.
Jeddah City Zones
Jeddah has the widest representation, including historic central Jeddah in addition to 55 development areas (numbered 1 to 55) distributed throughout the governorate.
Makkah Zones
Include: Abraj Makkah, Al-Manar, Ajyad Tower, King Salman Gate, Telal Village, Jabal Omar, Thakher Makkah, Sumou Suburb, Masar, and the two Makkah zones (1 and 2). With the emphasis that ownership in Makkah is restricted to Muslims.
Madinah Zones
Include: Al-Ghurra, the two Madinah zones (1 and 2), Al-Mahwa, Darat Al-Hijra, Madinah Downtown, Diyar Al-Maqar, Rua Al Madinah, the Knowledge Economic City, and Mishraf. Ownership there is likewise restricted to Muslims.
AlUla and Major Projects Zones
In AlUla: zones 1 to 17. The zones also include major projects and special economic areas such as: NEOM, Amaala, the Red Sea, the Jazan Special Economic Zone, Ras Al-Khair, and King Abdullah Economic City.
Fourth: What About Makkah, Madinah, and the Rest of the Kingdom?
Makkah and Madinah (Special Controls)
Given the sanctity of the place, ownership in the two holy cities is restricted to Muslims (individuals and Saudi companies). In many cases it is through a long-term usufruct right (up to 99 years) rather than freehold ownership, and only within the specified zones.
Completely Prohibited Areas
Non-Saudi ownership is prohibited in: the Kingdom's border areas, military sites and vital security facilities, and militarily restricted sites for national security reasons.
The Rest of the Kingdom's Regions
The principle is that ownership is only within the approved zones. The Authority has announced that ownership will gradually be made available in various cities of the Kingdom within specific areas according to a studied methodology, with detailed maps published for each zone including permitted percentages, types of rights, and their durations. Therefore, the first step is always to verify the property's eligibility via the Saudi Real Estate portal.
Fifth: Fees and Taxes in Complete Detail
This is what every prospective owner looks for most. Here is everything you will pay, clearly:
1. Real Estate Transaction Tax (5%)
A tax of 5% of the value of the real estate transaction, imposed once upon ownership transfer (the deed transfer), and it is not a recurring annual tax. It is calculated on the agreed value, provided it is not less than the fair market value. The system is very strict against "sham transactions" (recording a lower price to evade tax), with a penalty that may reach three times the value of the evaded tax. The party legally responsible for paying it is the "transferor" (usually the seller), and it is paid before or during the documentation of the transfer.
2. The Non-Saudi Disposal Fee (Up to 5%)
In addition to the transaction tax, the system stipulated a special fee for non-Saudis: "a fee collected by the Authority on the value of a non-Saudi's disposal of real rights to the property, not exceeding 5% of that value." Some sources have specified this fee upon transfer for non-Saudi owners at 10% (excluding GCC citizens) — so the applied percentage must be verified at the time of transfer from the official source.
3. Ownership Transfer and Deed Fees
Fees for the Real Estate Registry/Ministry of Justice services (excluding VAT), such as, for example: ownership transfer around 1,600 SAR, ownership transfer with a mortgage addition around 2,150 SAR, mortgage addition or release around 550 SAR. Electronic documentation costs via Najiz are also added.
4. Brokerage Fee (Up to 2.5%)
If the deal is done through a real estate broker, the buyer bears the brokerage fee up to a maximum of 2.5% of the property's value.
5. Important Notes on Taxes
There is no recurring annual property tax in Saudi Arabia as in some countries. VAT (15%) applies to real estate services like commercial rent and maintenance, but residential rents are exempt, and the sale of residential property is subject to the transaction tax (5%) rather than VAT.
Sixth: Ownership and Transfer Steps, Step by Step
Now, how is the process actually done from start to finish?
Step 1: Verify Eligibility and the Zone
Before anything, confirm via the "Saudi Real Estate" portal that the property is within a permitted geographic zone and that you are eligible according to your status (resident/investor).
Step 2: Inspect the Deed (Due Diligence)
Verify the validity of the real estate deed electronically via the Real Estate General Authority, and make sure it is free of mortgages or disputes before paying any amount.
Step 3: Obtain Security Approval
For the resident: obtain the Ministry of Interior's approval via Absher (My Services → Public Security → Non-Saudi Property Ownership service), by entering the deed data, the property's area, and its location. Important warning: do not transfer any amounts before obtaining official approval, to avoid freezing of funds or nullification of the process.
Step 4: Issue the Tax Number and Pay the Tax
Issue a tax number via the Zakat, Tax and Customs Authority, pay the real estate transaction tax, and obtain a reference number.
Step 5: Transfer the Deed via Najiz
After approval, the transfer is done electronically via the Najiz platform: both parties enter the deed data, agree on the price, the tax is paid, and the amount is transferred via the real estate wallet/exchange to protect both parties' rights, then authentication is done via the Unified National Access (Nafath). The new electronic deed is then issued in the buyer's name — and the average ownership transfer time is about 24 hours.
Step 6: Link the Property to the National Address
It is advisable to link the ownership to the national address to ensure that judicial and municipal notifications are received.
Seventh: Very Important Legal Warnings
Real Estate Concealment (Tasattur) = Nullity and Penalty
It is legally prohibited for a non-Saudi to own property through "real estate concealment" (registering it in a citizen's name). These contracts are absolutely null and void, punishable by imprisonment of up to two years and heavy fines, and the courts do not recognize any side agreements.
Penalties for Violating the System
Anyone who violates the system's provisions is punished by a warning, or a fine not exceeding 5% of the value of the real right in violation, up to 10 million SAR.
Frequently Asked Questions
Can an ordinary resident own more than one property?
No, a legal resident may own only one residential property for private housing. Multiple ownership is available to premium residency holders.
Can a non-Muslim own in Makkah and Madinah?
No. Ownership in Makkah and Madinah is restricted to Muslims, often through a long-term usufruct right within the specified zones.
What are the approximate total fees?
They include the transaction tax (5%) + the non-Saudi disposal fee (according to the approved percentage at the time of transfer) + ownership transfer fees + the brokerage fee (up to 2.5% if there is a broker). It is advisable to calculate the total in advance and verify the official percentages.
How long does the ownership transfer take?
After completing the approvals and paying the tax, the transfer is done electronically via Najiz, with an average ownership transfer time of about 24 hours.
Does my permanent departure from the Kingdom affect my ownership?
The ownership remains registered in your name. It is preferable to arrange a legal power of attorney to manage or sell the property in case of permanent departure.
Where do I start?
Always start from the "Saudi Real Estate" portal to inquire about the property's eligibility and zone, then follow the approval and transfer steps. For large deals, it is advisable to seek a real estate legal advisor.
Conclusion
The 2026 Non-Saudi Property Ownership System represents a genuine investment and stability opportunity within a clear legal framework. The key is: confirm the geographic zone first, inspect the deed, obtain the approvals before paying any amount, calculate the full fees, and complete the transfer officially through government channels. This way you ensure a legal, safe ownership and protected rights in the real estate registry.
Disclaimer: This material is for general awareness purposes and does not constitute legal advice. The regulations, zones, and fees are subject to updates, and please always verify from official sources (the Real Estate General Authority, the Saudi Real Estate portal, Najiz, the Zakat, Tax and Customs Authority) before making any decision.
