Saudi Arabia’s Ministry of Investment has announced that foreign investors are now allowed to own and sell real estate in the Kingdom for investment purposes under specific conditions.
According to Okaz, an Arabic daily, the ministry outlined key criteria for foreign ownership:
Geographical limitations: Properties must be located outside the holy cities of Makkah and Madinah.
Investment scope: Acquisitions must not be for speculative purposes—i.e., buying with the intent of short-term profit from price fluctuations.
Foreign investment companies must seek official approval to purchase real estate for various uses, including personal housing, industrial facilities, corporate headquarters, employee accommodations, and warehouses.
There is no fee for this service, which is accessible through the ministry’s e-services platform. Approvals are typically issued within five business days.
Required documentation includes:
A copy of the building permit or an official letter of approval from the municipality (or a land use statement from an authorized authority).
A copy of the property deed.
Real estate development firms looking to develop or sell property projects must submit a detailed report from an engineering office accredited by the Saudi Council of Engineers. Projects must:
Be located outside Makkah and Madinah.
Have a total cost (land and construction) of at least SAR 30 million.
Be utilized within five years of approval.
This initiative aims to stimulate real estate development and attract investment across regions outside the holy cities, while maintaining regulatory oversight.