Real estate investment in Saudi Arabia for foreigners

yousef
economy
yousef29 December 2023Last Update : 2 months ago
Real estate investment in Saudi Arabia for foreigners

An overview of the real estate investment system in Saudi Arabia for foreigners

Any licensed non-Saudi investor can invest in the Kingdom of Saudi Arabia and practice any investment activity, whether professional, economic, or craftsmanship. He can also own real estate by practicing that investment activity on the basis of reciprocity with accredited foreign embassies in the Kingdom.

The reciprocity system for accredited embassies in Saudi Arabia stipulates that the official headquarters can own real estate and the residence of its president and members. In return, a non-Saudi may not, in any way other than inheritance, acquire the right of easement, ownership, or usufruct over real estate located within the borders of the cities of Medina and Mecca.

Conditions for real estate investment in Saudi Arabia for foreigners

Foreigners can own real estate in Saudi Arabia and invest in it under specific conditions, as mentioned below: A licensed foreign investor can buy buildings or land to build buildings on for rent or sale, and benefit from that, provided that the total cost of the project is not less than 30 million Saudi riyals (7,996,291.80 US dollars). ) Land and building, provided that the property is invested within 5 years of ownership, and the Council of Ministers has the right to amend the value of this cost.

Natural foreigners, those with regular residency in Saudi Arabia, and those with experience in the field of investment can own real estate for their own residence after obtaining a license from the Ministry of Interior.

International and regional bodies may, in accordance with the agreements governing them, own their official headquarters, provided that they obtain a license from the Minister of Foreign Affairs.

Approvals can be obtained from the Prime Minister for other cases of property ownership for private housing.

The foreign investor residing in Saudi Arabia must not be subject to any financial or commercial violations or crimes from his home country, his mother’s country, or any other country, and he must not have any criminal punishment in his home country.

A resident foreign investor can obtain more than one license to practice the same activity in the Kingdom, provided that it is compatible with the laws and regulations of the country.

The raw materials and products issued by the investment must be compatible with the requirements of the Kingdom of Saudi Arabia.

Competent authorities are prohibited from approving any investment or ownership of real estate that does not meet the above-mentioned conditions.

Real estate investment for non-Saudis in Mecca and Medina

Real estate investment is possible for foreigners in the cities of Mecca and Medina in proportion to their sanctity, within the following conditions, according to the text of Article Five of the system for non-Saudis owning and investing in real estate:

It is not permissible for a non-Saudi to acquire the right of ownership or the right to ease or benefit from a property within the borders of Medina and Mecca, unless he acquires the right to do so through inheritance.

A non-Saudi can own real estate in Mecca and Medina for the purpose of endowment in accordance with the provisions of Islamic Sharia, provided that the endowment property is under the supervision of the Supreme Council of Endowments.

A non-Saudi may rent the property within the borders of the two cities for a period not exceeding two years, but the period is subject to renewal.

Conditions for owning real estate for non-Saudis

The conditions for owning real estate for non-Saudis can be found in the following points:
The non-Saudi investor must have a valid and unexpired residence permit.
The non-Saudi investor must provide complete information about the property, in addition to a copy of the property deed.
A non-Saudi resident investor is allowed to own only one Saudi real estate on the land of the Kingdom of Saudi Arabia.

How to own property for a non-Saudi

The steps for owning real estate for a non-Saudi can be identified as follows:

Enter the official website of the Absher electronic platform. Click on the “Absher Individuals” tab.
Log in if you are a previous user, or register a new account if you are a new user.
Choose the “My Services” option from the home page, then click on the “General Services” tab.
Click on the “Request to own property for non-Saudis” button.
Enter the required property information on the page that appears. Click the “Next” button, then confirm your request, submit it, and wait for a response.

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