Riyadh – Sharikat Mubasher: Saudi Arabia issued the legal framework governing real estate ownership and investment by non-Saudis, providing clearer guidelines on who may acquire property and under what conditions.

According to the official law, foreign individuals and companies licensed to operate in the Kingdom may acquire property necessary for their business and housing needs. Investments involving construction for resale or rental must meet a minimum project value of SAR 30 million and be utilized within five years.

The law also permits legally residing foreign individuals to own private residences with Interior Ministry approval. Diplomatic missions and international agencies may also acquire headquarters subject to reciprocal treatment and relevant permissions.

However, non-Saudis are strictly prohibited from owning, leasing, or benefiting from real estate in Mecca and Medina, except in cases of inheritance or specific endowments. The law also outlines exceptions for Saudi-listed firms, financial institutions licensed by SAMA, and other entities approved by the Council of Ministers.

The updated law supersedes prior legislation and will be enforced 90 days after its official publication. Implementing regulations are expected to follow through a Cabinet resolution.