Saudi Arabia opened real estate ownership to non-Saudis under a new law that took effect on 22 January 2026, regulated by the Real Estate General Authority (REGA). This guide explains the two pathways most relevant to Muslim buyers who are not Saudi citizens: the Digital ID / Saudi Properties portal route for non-residents, and the Premium Residency route (the SAR 800,000 Unlimited Duration option) — and what each allows in Makkah, Madinah and the rest of the Kingdom, with official sources throughout.
New here? Start with our overview of the designated ownership zones in Makkah and Madinah — the full list of areas where foreign ownership is permitted, with the live projects in each.
Quick answer
There are two main ways in for a non-Saudi Muslim buyer. A non-resident registers a Digital ID through a Saudi embassy abroad and applies via the official Saudi Properties portal; they can buy inside approved Geographic Zones, and in Makkah/Madinah only if Muslim — there the right is a 99-year usufruct, not freehold. Premium Residency (a one-time SAR 800,000 payment) makes you a legal resident, which adds the right to one extra freehold property outside the zones (in the other approved cities) plus wide non-property benefits — but it does not unlock the holy cities on its own, and there, buyers receive a 99-year usufruct (use and benefit for a fixed term), not freehold.
Two things to understand up front
1. Premium Residency does not, by itself, unlock Makkah or Madinah. Access there is decided by whether the buyer is Muslim, and applies equally to Muslim non-residents and Muslim residents. What Premium Residency genuinely adds is legal residency status — the right to buy one extra residential property outside the approved zones, plus benefits like no sponsor, family inclusion and business ownership.
2. In Makkah and Madinah, a Muslim buyer receives a 99-year usufruct (the right to use and benefit from the property for a fixed term), not freehold/full ownership — this applies to Premium Residency holders too, as confirmed directly with REGA’s Saudi Properties department in August 2026. Elsewhere in the Kingdom, within the approved Geographic Zones, full ownership (freehold) is generally available.
1. Route One — the Digital ID pathway (non-resident buyers)
Who this is for
A Muslim, non-Saudi individual living outside Saudi Arabia who wants to buy property but does not (yet) hold any form of Saudi residency.
How it works
- Register a Digital Identity through a Saudi embassy or consulate abroad — a mandatory first step for any non-resident before they can transact. Our digital-readiness guide walks through this in detail.
- Create an account and submit an application on the official Saudi Properties portal (saudiproperties.rega.gov.sa), REGA’s centralised gateway for non-Saudi ownership.
- The portal runs an eligibility check against the buyer’s status and the property’s zone before allowing an offer to proceed.
- Once a purchase is agreed, the transaction must be recorded in the national Real Estate Registry — registration is what makes the ownership legally valid.
What a non-resident buyer can own
- Within the Kingdom generally: only property located inside a Council of Ministers-approved Geographic Zone (see Section 5 for current zones in Riyadh, Jeddah and AlUla).
- A non-resident cannot buy a personal-use property outside the approved zones — that allowance is reserved for legal residents (see Route Two).
- In Makkah and Madinah: permitted only if the buyer is Muslim, and only within the specific holy-city zones REGA has designated (12 zones in Makkah, 10 in Madinah as of June 2026). A Muslim buyer receives a 99-year usufruct there rather than freehold (see Section 3). This has been confirmed for Premium Residency holders; whether the same applies to a Muslim non-resident on the Digital ID route has not yet been separately confirmed and should be checked with REGA / Saudi Properties before you rely on it.
- Non-Muslim non-residents cannot buy in Makkah or Madinah as individuals; the only route in for a non-Muslim is indirectly, through a Saudi company with foreign shareholders.
Costs to budget for
Registration fees on non-Saudi purchases can run up to 10% of the property value in total (a 5% real estate disposition tax plus up to a further 5% non-Saudi disposition fee) — always confirm the current rate with REGA or a licensed agent before committing, as implementing regulations can adjust category-specific rates.
2. Route Two — Premium Residency (Unlimited Duration, SAR 800,000)
Who this is for
A non-Saudi buyer — Muslim or not — who wants to live in Saudi Arabia long-term, not just own a property there, and is able to make the one-time SAR 800,000 payment.
How it works
- Apply through the Premium Residency Center at pr.gov.sa, one of seven residency products offered (this is the “Unlimited Duration Premium Residency” tier).
- Pay the one-time fee of SAR 800,000 (an annual Limited Duration option also exists, at SAR 100,000 per year, for those who prefer not to commit to the lump sum).
- Once granted, the holder is a legal resident of Saudi Arabia with no Saudi sponsor (kafeel) required — a status distinct from, and broader than, a standard work-linked residency permit.
What property rights this unlocks
- Because Premium Residency confers legal resident status, the holder gets the same zone-based buying rights as any resident non-Saudi — property within the approved Geographic Zones.
- Residency status additionally permits one residential property outside the approved zones, for the holder’s own personal use — a right non-residents on the Digital ID route do not have.
- That extra allowance is a freehold right, and freehold is never available in Makkah or Madinah — so it does not carry into the holy cities in that form. Premium Residency does, however, make a real difference there: a non-Saudi Muslim Premium Residency holder can hold a 99-year usufruct even outside the designated holy-city zones, whereas a Muslim buyer on the Digital ID route is confined to the designated zones. In neither case is freehold available in the holy cities.
- The Muslim-only eligibility rule always applies in Makkah and Madinah: Premium Residency does not, on its own, grant a non-Muslim holder any access to the holy cities. For a Muslim holder the right is a 99-year usufruct (never freehold) — and, unlike the Digital ID route, a Premium Residency holder can hold that usufruct outside the designated zones as well.
- Within Makkah and Madinah, what a Premium Residency holder acquires is a 99-year usufruct, not freehold — confirmed directly with REGA’s Saudi Properties department (August 2026) — and this holds whether the unit is inside or outside the designated holy-city zones. Outside the holy cities, within the general approved Geographic Zones, full ownership (freehold) is generally available (see Section 3).
Wider benefits beyond property
- No Saudi sponsor needed to live, work or do business in the Kingdom.
- Spouse and dependent children can be included under the same residency.
- Can own 100% of a Saudi company without a local partner — relevant for buyers who also want a business presence in Riyadh, Jeddah or elsewhere.
- Multiple entry and exit, and access to standard government services on the same basis as other legal residents.
For more on this route, see our guides on Premium Residency and property ownership and the off-plan Premium Residency application changes.
3. Freehold vs usufruct — and is there a way to buy outside the zones?
Freehold vs usufruct in the holy cities
The law recognises two forms of property right for non-Saudis: full ownership (equivalent to freehold) and usufruct (the right to use and benefit from a property for a defined period, without holding the title itself). For property within the general approved Geographic Zones (Riyadh, Jeddah, AlUla, etc.), full ownership is generally what’s available. Within Makkah and Madinah specifically, REGA’s Saudi Properties department confirmed by phone in August 2026 that what a Premium Residency holder receives is usufruct, not freehold — even though they are Muslim and legally resident. We have not yet had this separately confirmed for a Muslim non-resident buying via the Digital ID route in the holy cities, so that point should be checked directly with REGA before it is treated as settled. This usufruct runs for a fixed term of 99 years rather than being indefinite — confirmed directly with REGA’s Saudi Properties department in the same August 2026 enquiry. It is a right to use and benefit from the property, distinct from freehold ownership of the title. The 99-year term should also be confirmed directly with the developer or seller for the specific unit, since it is set at the point of sale. Importantly, the usufruct is renewable on transfer: when it is sold on, the term resets to a fresh 99 years for the new buyer, so it does not simply run down as the property changes hands. As with any purchase, confirm the exact terms of your title with REGA / Saudi Properties in writing before you commit.
Any way to buy outside the designated zones?
Here the freehold-versus-usufruct distinction is everything. Freehold (full title) is never available in Makkah or Madinah — not inside the zones, not outside them, and no business setup, investment licence or company structure changes that. A 99-year usufruct is a different right, and this is where being a Premium Residency holder matters:
- A non-Saudi Muslim Premium Residency holder can hold a 99-year usufruct outside the designated zones in the holy cities, not only within them — confirmed with REGA’s Saudi Properties department (August 2026). It is a right to use and benefit from the property, not freehold ownership of the title.
- A Muslim buyer on the Digital ID route (without Premium Residency) remains confined to the designated holy-city zones.
- A Saudi company with non-Saudi shareholders does not escape the zone map for company ownership: REGA restricts company ownership in Makkah and Madinah to the same designated zones that apply to individual buyers.
- A wholly foreign-incorporated company (with no Saudi element) cannot buy in Makkah or Madinah at all, inside or outside the zones.
- For non-Muslims, the only route is indirect: shares in CMA-licensed listed real estate companies or REITs that hold assets in Makkah or Madinah. This gives investment exposure through securities rather than a title deed and is not tied to the zone map — but it is not personal ownership or use of a specific property, only economic exposure through a fund.
- Implementing regulations are still being finalised, so confirm the current position with REGA or a licensed Saudi lawyer — and the specific usufruct terms with the developer or seller — before treating anything as final.
4. Side-by-side comparison
| Feature | Digital ID route (non-resident buyer) | Premium Residency route (SAR 800,000) |
|---|---|---|
| Legal status under the ownership law | Non-resident foreign national | Legal resident of Saudi Arabia |
| How you qualify | Register a Digital ID through a Saudi embassy/mission abroad, then apply via the Saudi Properties portal | Apply and pay a one-time SAR 800,000 fee for Unlimited Duration Premium Residency via pr.gov.sa |
| Property inside approved Geographic Zones (parts of Riyadh, Jeddah, AlUla, etc.) | Permitted | Permitted |
| One extra residential property outside the approved zones, for personal use | Not permitted | Permitted as freehold in the other approved cities — in Makkah or Madinah freehold is never available, but a Muslim holder may take a 99-year usufruct there, including outside the designated zones |
| Makkah & Madinah — eligibility | Permitted only if the buyer is Muslim — confined to the designated holy-city zones | Permitted only if the buyer is Muslim — and a Premium Residency holder can hold the 99-year usufruct outside the designated zones too |
| Makkah & Madinah — form of right acquired | Not yet independently confirmed — check with REGA / Saudi Properties before you rely on it | 99-year usufruct, not freehold — confirmed directly with REGA’s Saudi Properties department, August 2026 |
| Right to live, work or invest in Saudi Arabia | No — property ownership alone does not grant residency | Yes — indefinite residency, no Saudi sponsor required |
| Family included in the status | No | Yes — spouse and children can be included |
| Own 100% of a Saudi business without a local partner | No | Yes |
| Mandatory registration | Real Estate Registry, via the Saudi Properties portal | Real Estate Registry, via the Saudi Properties portal |
| Typical transfer/registration cost on the property itself | Up to 10% (5% real estate disposition tax + up to 5% non-Saudi disposition fee) — confirm current rate with REGA | Same fee structure applies to the property purchase |
5. Current status of the approved zones (as of mid-2026)
REGA published its first Geographic Zones Document on 23 June 2026. Coverage is expected to expand over time; REGA has not given a timeline for further releases, so this list should be checked against the Saudi Properties portal before you commit to a specific property.
| City | Designated zones open to non-Saudi ownership (published 23 June 2026) |
|---|---|
| Jeddah | 57 zones |
| Riyadh | 9 zones |
| AlUla | 17 zones |
| Makkah | 12 zones — Muslim buyers only |
| Madinah | 10 zones — Muslim buyers only |
Explore the approved Holy-City zones we cover in detail: in Madinah, Knowledge Economic City, Rua Al Madinah and Mishraf; in Makkah, the Masar destination.
6. Official government sources
- Real Estate General Authority (REGA) — rega.gov.sa
- REGA — announcement: Non-Saudi Property Ownership System enters into force
- REGA — official Q&A on the updated ownership law (PDF)
- Saudi Properties portal — application gateway for non-Saudi ownership
- Premium Residency Center — official application portal
- my.gov.sa — Premium Residency service listing
- Saudi Press Agency — official announcement on the ownership law
- Capital Market Authority (CMA) — regulator for listed real estate funds / REITs
Important note
This guide is general information for prospective buyers and is not legal advice. The ownership law’s implementing regulations are still being finalised in stages, and REGA’s Geographic Zones Document is expected to be updated further. Every buyer should verify current zone maps, fees and eligibility directly with REGA, the Premium Residency Center, or a licensed Saudi real estate lawyer before signing any contract.
Thinking through which route fits you? Check your eligibility, read how the buying process works, or book a consultation and we will talk it through.
Important
This guide is general information, not legal or financial advice. Always obtain independent legal advice in both Saudi Arabia and your country of residence before entering into a transaction.