Urgent: The start of implementing the system of foreigners owning real estate in Saudi Arabia… tomorrow
The application of the system of foreigners owning real estate and acquiring real rights over it begins within said in previous television statements: The implementation of the property ownership system for foreigners at the residential level in all Saudi cities, with the exception of 4 cities, including: Mecca, Medina, Jeddah, and Riyadh.
The minister noted that there are areas where ownership is permitted for foreigners from outside Saudi Arabia, indicating that residents have the right to own a residential unit.
The minister explained that for the commercial, industrial and agricultural sectors, ownership will be available. For foreigners in all cities of Saudi Arabia, without exception.
The minister added that the housing sector and municipalities are an essential focus of Vision 2030, expecting that the percentage of Saudis owning their homes will reach 66% by the end of the year and exceed the targets for the year 2025.
The system aims to Non-Saudi ownership of real estate aims to regulate the ownership of real estate by non-Saudis, individuals and entities, within a specific geographical scope and with clear legal controls, with special and specific exceptions.
Non-Saudi ownership of real estate
According to the system, non-Saudis are allowed to own real estate or acquire real rights over it within the Kingdom, within the geographical scope determined by the Council of Ministers.
This comes based on a proposal from the Board of Directors of the General Real Estate Authority, and the approval of the Council of Affairs Economic and development.
This includes determining the type of real rights that can be acquired, the maximum ownership percentages, and the controls related to them.
Exception of Mecca and Medina
The system allows a non-Saudi resident of a natural nature to own one property designated for housing, outside the specified geographical scope, with the exception of the cities of Mecca and Medina, and the person is required to be a Muslim if the ownership is within these two cities.
According to the system, unlisted companies are granted In the Saudi financial market, in which non-Saudis participate in ownership, the right to own property within the aforementioned geographical scope, including Mecca and Medina, if the organization is in accordance with the Saudi companies system.
It is permissible for it to own property outside this scope for the purposes of practicing activity or housing workers, as determined by the regulations.
Listed companies own
The system allows companies listed in the financial market, investment funds, and special purpose establishments to own property in all of Saudi Arabia. Including Mecca and Medina, in accordance with controls issued by the Capital Market Authority in coordination with the General Real Estate Authority and other concerned authorities.
The system stressed that the application of the system does not affect the rights granted in other systems, such as the privileged residency system or the agreements of the Gulf Cooperation Council countries, and the ownership of non-Saudis does not result in any additional privileges other than regular rights.
The system stipulates the possibility of diplomatic representations and international bodies owning official headquarters and presidents’ residences, on the condition of obtaining Approval of the Ministry of Foreign Affairs, and on the basis of the principle of reciprocity.
Non-Saudi entities
The system requires non-Saudi entities, including companies and non-profit organizations, to register with the competent authorities before ownership. Ownership is not legally valid except after registration in the real estate registry.
The system imposed a fee not exceeding 5% of the value of real estate transactions for non-Saudis, with its details specified in the executive regulations.
Penalties for violators
Violators face penalties that include a fine or a warning, while those who provide misleading data are punished with a fine of up to 10 million riyals, with the possibility of selling the violating property by order of the competent court.
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