The Law of Real Estate Ownership and Investment by Non-Saudis promulgated by Royal Decree No. 15 issued on 17/04/1421 AH, is a milestone in the progress of economic openness in the Kingdom of Saudi Arabia. The Law aims to attract foreign investments, promote economic development, and provide job opportunities; and regulates the conditions stipulated for non-Saudis to own and invest in real estate, whether they are natural or juristic persons, to practice any activity licensed to them, whether it is a professional, vocational, or economic activity. The above Decree also specifies the areas in which non-Saudis are permitted to own real estate and sets controls for the ownership and investment process.

First: Permissions granted under the Law of Real Estate Ownership and Investment by Non-Saudis:

1. A non-Saudi investor may own/rent a real estate to practice any activity to which he is licensed, subject to the approval of the authority issuing the license.
2. A non-Saudi investor is allowed to purchase buildings or lands to construct buildings on them and invest them by way of selling or renting, subject to the following conditions:
3. The total cost of the project, land, and construction, shall not be less than thirty million Saudi Riyals (SAR 30,000,000).
4. Such real estate shall be invested within five years from its acquirement.
5. Non-Saudi natural persons legally residing in the Kingdom shall be allowed to acquire real estate for their private residence, after obtaining permission from the Ministry of Interior.
6. The foreign representatives approved in the Kingdom may acquire their official seat of office and the residence for the head and members of staff.
7. International and regional agencies, within the scope of the agreements governing them, may acquire their official headquarters, subject to obtaining permission from the Minister of Foreign Affairs.

Second: Restrictions set by the Law of Real Estate Ownership and Investment by Non-Saudis:

1. Other than by way of inheritance, a non-Saudi may not have the right to ownership, easement, or usufruct of real estate located within the boundaries of the cities of Mecca and Medina.
2. Acquirement of right to ownership shall be excepted if the owned real estate is endowed to a specific Saudi entity, under the provisions of Sharia, provided that it is stipulated in the endowment document that the supreme endowment council has the right to practice trusteeship over the endowed property.

N.B: The phrase (for a non-Saudi) refers to:

• A natural person who does not hold Saudi nationality.
• Non-Saudi company.

A Saudi company that is founded – or participates in its founding or owns shares in – by any natural or legal person who does not hold Saudi nationality, except for the following entities:

1. Banks and real estate financing companies licensed by the Saudi Arabian Monetary Agency (SAMA). This applies only to real estate they finance for Saudi citizens, their headquarters or branch offices, or property necessary for their operations, following SAMA regulations.
2. Listed companies (whose purpose is not to deal with real estate) are exempt for their headquarters, branch offices, or operational properties, on the condition that all such properties are used solely for these purposes, according to Capital Market Authority (CMA) regulations.
3. Other entities designated by the Council of Ministers under their established regulations.

Any other entities designated by the Council of Ministers under specific regulations they establish.

It is worth noting that applying the provisions of the above Law shall not prejudice the following:

1. Ownership rights granted to non-Saudis under previous Laws.
2. The privileges included in the rules regulating real estate ownership for citizens of the countries of the Gulf Cooperation Council.
3. The acquisition of ownership rights or any other original right in rem over a real estate through inheritance.
4. Regulations, Decisions of the Council of Ministers, and Royal Orders prohibiting ownership in certain areas.

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