Following the enactment of the Law of Real Estate Ownership and Investment by Non-Saudis, which came into force at the start of 2026, the Kingdom of Saudi Arabia (the Kingdom) has taken the next major step in opening its real estate market to foreign capital. On 23 June 2026, the Council of Ministers approved the Implementing Regulations to the Law of Real Estate Ownership by Non-Saudis (the Regulations) and endorsed the geographic areas designated for non-Saudi property ownership.
In broad terms, the 2025 Law, together with the Regulations, replaces the old case-by-case approval system with a transparent, rules-based framework centered on designated investment zones and a single central electronic platform run by the Real Estate General Authority (REGA), through which registration, payment, and title issuance all take place. The Regulations aim to give operational effect to the Kingdom’s new foreign real estate ownership regime, setting out exactly how non-Saudi individuals, companies, and other entities can acquire ownership and other real estate rights in the Kingdom. The Regulations provide new details on who is eligible under the ownership regime, what steps they must complete, and what fees apply.
The Regulations form part of the Kingdom’s wider Vision 2030 initiative to attract foreign capital, deepen private-sector participation, and support the development of major urban, tourism, hospitality, retail, and mixed-use projects. This GT Alert summarizes the key requirements introduced by the Regulations and their practical impact on foreign investors and developers.
Overview of the New Regime Established by the Regulations
The most notable features of the Regulations are as follows:
- Registration, Transparency and Ongoing Disclosure Obligations – In order to transact, foreign owners must register with the competent authority, disclose their direct and indirect ownership and control, and satisfy identification, banking, and (for individuals) local-contact requirements. Registered foreign entities carry continuing 15-day notification duties for changes in ownership, control, or independence.
- Electronic Platform – Applications, payments, and title-deed issuance move onto a single REGA mandated electronic platform, integrated with the Saudi Central Bank (SAMA) payment infrastructure.
- Designated Zones and Foreign-Owned Saudi-Incorporated and Non-Listed Companies – REGA has launched a dedicated link with a map showing areas across the Kingdom where foreign ownership is permitted. Saudi-incorporated non-listed companies that have one or more foreign owner (natural or corporate) may own real estate property outside the designated zones (with the exception of Makkah and Madinah) for specific purposes.
- Fees – real estate disposal fee is fixed (currently 2% in the principal cities), with a schedule of zero-rated transactions.
Registration, Transparency, and Ongoing Disclosure Obligations
Foreign buyers now have a rule-based pathway to ownership rather than case-by-case exceptions. This should provide more clarity of process and reduce execution risk for investors. Individuals, foreign corporates, not-for-profits, and other entities each have a defined qualification path, widening the pool of eligible capital seeking to own, build, and operate assets in the Kingdom.
- Natural Non-Resident Owners – Natural persons who are non-Saudi nationals or residents must comply with the following:
– Obtain an electronic ID from the Ministry of Interior
– Open a bank account in the Kingdom in their name
– Obtain a contact number in the Kingdom in their name
- Foreign Companies (i.e., not incorporated in the Kingdom) – must comply with the following:
– Register with the Ministry of Investment of Saudi Arabia (MISA) in accordance with the procedures to be established by REGA and disclose its direct and indirect owners. MISA will issue a registration number for the company after satisfying the legal and regulatory requirements.
– The authorized representative of the company must obtain an identification in the Kingdom.
– Open a bank account in the Kingdom in the company’s name.
– A registered foreign company must notify MISA within 15 days of the occurrence of any of the following: (i) ownership transfer (5% or more), whether through one transaction or a series of transactions, (ii) internal arrangements or issuance of regulations in the jurisdiction of incorporation that results in restricting the independence of the company or enabling a third party to exercise influence on the decisions and actions of the company (whether resulting from ownership change or not), (iii) any other cases determined by REGA.
- Foreign Non-for-Profit Entities – must comply with the following:
– Register with the National Centre for Development of the Non-For-Profit Sector (NCNP) in accordance with the procedures to be established by REGA and disclose its controlling entities/ persons, directly or indirectly. The NCNP will issue a registration number for the organization after satisfying the legal and regulatory requirements.
– The authorized representative of the entity must obtain an identification in the Kingdom.
– Open a bank account in the Kingdom in the entity’s name.
– A registered entity must notify the NCNP within 15 days of the occurrence of any of the following: (i) material change in the entity or identity of persons who can exercise control over its decisions, (ii) internal arrangements or issuance of regulations in the jurisdiction of incorporation that results in restricting the independence of the company or enable a third party (internally or externally) to exercise influence on the decisions and actions of the entity, and (iii) any other cases determined by REGA.
- Other Non-Saudi Legal Companies – as determined by a decision from the Ministry of Commerce (COM), must comply with the following:
– Register with the relevant entity determined in the COM decision and disclose details of its direct and indirect owners and controlling entities/persons. The relevant entity will issue a registration number after satisfying the legal and regulatory requirements.
– The authorized representative of the entity must obtain an identification in the Kingdom.
– Open a bank account in the Kingdom in the entity’s name.
– The company must notify the relevant entity within 15 days of the occurrence of any material changes.
The Electronic Platform
REGA is mandated to establish an electronic platform for the registration of non-Saudi owners and Saudi-incorporated companies that are owned by non-Saudi shareholders. All applications for real estate ownership subject to the scope of the Regulations must be submitted via the portal. All financial transactions made by the non-Saudi person or entity in relation to the real estate property ownership must be done through the electronic payment platform in accordance with SAMA’s payment systems/services. Procedures relating to property ownership and issuance of title deeds will be completed through the electronic platform.
Digital, end-to-end execution with centralizing applications, payments, and title issuance on a single REGA platform tied to SAMA’s payment rails aim to shorten timelines and improve certainty of title.
Designated Zones
The Regulations retains protections around Makkah and Madinah and channels certain company ownership outside the designated zones through MISA approval, signaling that the opening is broad but calibrated rather than unrestricted.
Saudi-incorporated non-listed companies that have one or more foreign owner (natural or corporate) may own real estate property outside the designated zones (with the exception of Makkah and Madinah) for the following purposes: (i) to engage in its business activities, or (ii) to be used as accommodation for its staff. A pre-requisite to ownership in such cases is subject to obtaining MISA’s prior approval. MISA’s prior approval is not required if the real estate property is located within the designated zones (including in Makkah and Madinah).
Fees & Penalties
The fee payable to REGA on disposals of real estate properties covered in the scope of the Law of Real Estate Ownership and Investment by Non-Saudis and the Regulations is currently set at 2%, applying to properties located in Riyadh, Makkah, Madinah, and Jeddah. The Regulations also set out in a list of transactions to which a 0% rate will apply, including disposals resulting from the execution of judicial orders; disposals by non-Saudi developers, provided that they develop the units within the period stipulated in the development license and the sales of units are completed within one year from such period; and disposals from natural persons to companies or funds established in the Kingdom that they wholly own, whether directly or indirectly.
The Regulations establish a graduated penalty system for foreign buyers who submit false or misleading information to obtain property ownership rights. Foreign buyers who submit false or misleading information may be fined up to 5% of the value of the property right, with prescribed monetary caps on such fines. Other violations, including but not limited to failing to rectify violations, or failing to report required ownership changes, carry fines ranging from warnings to penalties between 0.1% and 3% of the property’s value, with prescribed monetary caps on such fines.
Next Steps
The Regulations mark an important step towards making the Kingdom’s foreign real estate ownership regime operational. However, there are a few aspects within the Regulations that require further clarification from a practical perspective. We are monitoring developments in this space for more insight into the processes from compliance and practical perspective.