If you are thinking of investing in property abroad, then Saudi Arabia can now be on your list. Saudi Arabia has officially opened its real estate market for foreign citizens and companies. This big decision has been taken for the economic development of the country and is an important part of the Vision 2030 plan. The aim is to develop other sectors and reduce dependence on oil.
What Does the New Law Say?
According to the new law published in the Umm al-Qura Gazette on 25 July 2025, foreigners can now buy property in many parts of Saudi Arabia. This law will come into effect 180 days after its publication.
Foreign residents who are legally living in Saudi Arabia can buy a residential property for personal use, but only outside Mecca and Medina. Foreign companies operating in Saudi Arabia can buy property anywhere for their operations or employees. Embassies and international organizations can also buy property for office use, but only after government approval.
However, there are still strict rules in Mecca and Medina. Non-Muslims are not allowed to buy property for personal use in these holy cities. Muslims can only own property in very limited and controlled situations. The government has said that these restrictions are meant to maintain the religious and cultural sanctity of these sites.
Property Rights, Registration and Penalties
The law allows other property rights besides full ownership. Usufruct rights will let a person use and benefit from a property but not own it. Lease agreements will also be allowed for both short and long terms.
All foreign buyers will have to register their property with the National Real Estate Registry, and a property transfer fee of up to 5% will be charged. Providing false documents or breaking the rules can lead to a fine of up to 1 crore Saudi Riyals (around ₹22 crore), confiscation of the property or legal action.
Foreigners who already own property in Saudi Arabia will keep their rights. Citizens of Gulf countries (GCC) can now buy property in Mecca and Medina, which was not allowed before.
The government will issue the detailed rules in the next six months. These rules will explain where foreigners can buy property, how they can buy it, under what conditions and what documents will be required. Foreign investors have been advised to follow the upcoming instructions carefully so that they can make the most of this new opportunity.