Saudi Arabia Issues New Foreign Property Ownership Regulations: What Overseas Investors Need to Know

Saudi Arabia has published the executive regulations for its foreign property ownership law, completing the legal framework that opens the Kingdom’s designated zones to overseas buyers. Here is what the new rules say and what they mean in practice.

What has changed

The regulations turn the 2026 ownership law into a working system. The key mechanics are now confirmed:

• One official channel. REGA’s unified electronic portal (Saudi Properties) is the exclusive platform for submitting applications to purchase property or acquire real estate rights.
• Identity first. Non-resident foreign individuals must obtain a Ministry of Interior approved digital identity, open a Saudi bank account in their own name and register a Saudi mobile number linked to that identity before completing a purchase.
• Electronic money trail. All financial transactions must be completed through electronic payment systems approved under Saudi Central Bank regulations before title deeds transfer through the Real Estate Registry.
• Disclosure and penalties. The rules strengthen disclosure requirements and set penalties of up to SR10 million for violations.
• One home per family. A foreign family is limited to a single residential purchase, with a foreign spouse and non-Saudi children treated as dependents.

The fee picture

The ownership law allows a transfer fee of up to 5% on non-Saudi transactions. The executive regulations set it, initially, at 2% for real estate rights acquired by non-Saudis in Riyadh, Jeddah, Makkah and Madinah. That sits alongside the standard 5% Real Estate Transaction Tax, so buyers should still budget carefully and get every fee allocation written into the contract.

A more transparent investment environment

The regulations form part of Saudi Arabia’s wider Vision 2030 programme, which aims to attract international investment while creating a transparent, well-regulated real estate market. Standardised procedures, digital verification and electronic processing are designed to make transactions secure and traceable end to end.

What this means for investors

• Greater legal clarity on who can buy, where and how.
• A structured, fully digital purchasing process with a single official portal.
• Improved confidence through registered identities and electronic payment trails.
• Growing opportunity in the designated investment zones as developers release availability.
• A continued need for careful due diligence before committing to any project or location.

Why the Holy Cities matter

Makkah and Madinah remain central to global Muslim interest in Saudi Arabia. For many overseas buyers the appeal is not only financial; it is proximity, religious significance, family use and a long-term connection with the Kingdom.

Ownership in the Holy Cities runs under stricter rules than the rest of the Kingdom: individual ownership is reserved for Muslims, resident or abroad, and applies only within the officially designated zones. The Saudi Properties portal currently lists 12 approved zones in Makkah and 10 in Madinah, from Rou’a Al Haram Al Makki (the King Salman Gate project) to Rua Al Madinah. Investors should distinguish carefully between general foreign ownership opportunities and the specific rules of the Holy Cities.

Looking ahead

Saudi Arabia’s real estate market is evolving quickly. As developers begin releasing availability inside the designated zones and further guidance is published, the picture of where the strongest opportunities lie will sharpen. Haramain Properties tracks these developments and publishes independent, source-checked analysis as the market opens up.

Stay ahead of the market. Register your interest to receive regulatory updates, new project launches and verified opportunities in the Holy Cities as they go live. It takes under a minute.