Non-Saudi property ownership in Saudi Arabia and how to invest fractionally from SAR 500 with Madak

The legal framework

What is the non-Saudi property ownership law?

In July 2025 the Council of Ministers approved the updated law on non-Saudi property ownership; it was published in the official gazette and took effect in January 2026. In June 2026 the Council approved the implementing regulations and the document defining the geographic zones where ownership is permitted. The law replaces the previous 2000 law, in line with Saudi Vision 2030.

• The defined-zones framework

  Non-Saudis may own property and acquire real rights inside geographic zones defined by a Council of Ministers decision, following official maps that set out boundaries and controls.

• A broad definition of non-Saudi

  It spans resident and non-resident individuals, companies, funds, organisations and diplomatic missions.

• Aligned with Vision 2030

  The aim is to strengthen investment appeal, raise market efficiency, increase liquidity and support urban development in major cities.

Where ownership is allowed

The permitted geographic zones

According to the Real Estate General Authority, the zones document covers locations in Riyadh, Jeddah, Makkah and Madinah, and extends to other cities and governorates. It includes detailed maps setting out, for each zone, permitted ownership percentages, the types of rights acquired, permitted durations and the associated controls.

• Riyadh

  Zones inside the capital and its major projects.

• Jeddah

  The widest concentration of zones on the west coast.

• Makkah

  Under special controls, see the section below.

• Madinah

  Under special controls that respect the sanctity of the place.

• AlUla and development destinations

  Within projects and special economic zones.

• Giga projects and economic zones

  Zones designated by Council of Ministers decisions.

Note: exact zone boundaries and permitted ownership percentages are set by Council of Ministers decisions and published in the official Real Estate General Authority maps. Eligibility differs by location, so verify the zone at parcel level before any decision. The Madak team performs that verification on behalf of its investors for every opportunity offered.

The nature of the rights

Types of property rights that can be acquired

Four types, each suited to a different use:

• Full ownership

  Outright ownership of the property inside the permitted zones.

  Suits long-term investment and residence

• Usufruct

  The right to use and benefit from the property for a defined term without owning the title.

  Suits temporary use and operation

• Long-term lease

  Extended lease contracts granting stable rights of use.

  Suits commercial activity

• Easement and other real rights

  Ancillary rights attached to the property, transferable under the controls.

  Suits special cases

All these rights are subject to the percentage and duration limits set by the Council of Ministers for each zone, and take effect only once registered in the national real estate registry.

Fees and obligations

What a non-Saudi investor should know

• Disposal fee of up to 5%

  The Authority collects a fee on the value of a non-Saudi disposal of real rights, not exceeding 5% of value, without prejudice to any other statutory fees or taxes. The regulations set out the cases subject to a zero rate.

• Registration is mandatory

  A right takes effect only once registered in the national real estate registry with the competent body, which is what protects the investor.

• Violations and penalties

  Fines reach SAR 10 million per violation, and forced sale may be ordered where property was acquired on misleading information or in prohibited circumstances, with the right of appeal before the administrative court within 60 days.

• Supervision and oversight

  A dedicated committee at the Real Estate General Authority investigates violations and imposes penalties, which keeps the environment regulated and safe for investors.