Can Foreigners Buy Real Estate in Saudi Arabia? A Complete Guide (2025 Update

Introduction

There is good news for those who want to own a house or land in Saudi Arabia, because recently, Saudi Arabia has implemented significant reforms in the real estate sector, resulting in new opportunities now being created for both Saudis and non-Saudis to invest.

 Earlier, only Saudis or other people under certain conditions could buy land, but now the government has introduced rules and regulations that allow foreigners to invest as well.

Investors from all over the world are now interested in the real estate market of Saudi Arabia, especially in cities like Riyadh, Jeddah, and Mecca, where development projects are growing rapidly. "These reforms can only be truly beneficial if one has a clear understanding of today's legal rules, requirements, and procedural steps.

The main purpose of this blog is to provide you with all kinds of complete information related to buying land in Saudi Arabia.

Can Foreigners Buy Land in Saudi Arabia?

Between 2024 and 2025, Saudi Arabia implemented new investment policies that permit foreigners—whether individuals or companies—to acquire land, provided they fulfill specific requirements.

Foreign individuals

Must have a valid Iqama.
Must obtain special approval from the government.
You’re only allowed to buy land in places officially approved by the Saudi government.

Foreign companies

An investment license is required

Business objectives and plans should be seen

Ownership will be available only after approval

 

This is all part of the Vision 2030, in which Saudi Arabia is opening up the real estate sector to foreign investors

Who Can Buy Real Estate in Saudi Arabia?

What kind of people will be allowed to buy property in Saudi Arabia?

1. GCC Nationals

Citizens of Gulf countries can buy land or houses without any restrictions.

2. Foreign residents

Those who have a valid Iqama can buy residential or commercial property, but government approval is required.

3. Licensed foreign investors

Foreign investors who have a license from the Ministry of Investment can buy commercial and industrial land.

4. Companies or institutions

Registered foreign companies can acquire land after government permission if they want to do business in Saudi Arabia.

Who Cannot Buy Property in Saudi Arabia?

 People who come to Saudi Arabia only on a visit visa, or who do not have a residence permit, are not allowed to buy property.

Tourists and visitors

 Property ownership is only for those who live here legally and permanently or who have obtained government investment approval.

Individuals from Restricted Countries

 In some cases, the Saudi government may ban people from countries with which there are diplomatic or security tensions. This list is updated periodically, so it is important to check with your country beforehand.

Properties in Restricted Zones

 There are some places where foreigners cannot buy land, such as:

·       Makkah and Medina These cities are reserved for Saudi citizens only, Saudis are allowed to own property here.

·       Military and border areas - Due to security reasons, no foreigner is allowed to acquire land in these areas.

These restrictions have been placed to protect the country's national security and Islamic sites.

Where Can Foreigners Buy Land or Property?

There are some places in Saudi Arabia where foreigners or companies are allowed to buy property.

 Where allowed

 Riyadh

As the capital, the city is open for business and residential investment. Modern residential and commercial projects are available for foreign buyers.

Jeddah

 Foreigners can buy residential apartments, offices and commercial spaces in Jeddah as it is a coastal and business hub

Dammam

A major city in the Eastern Province, where properties near the oil industry and economic zones are available for foreign investment.

NEOM (Selected Zones)

 A futuristic modern city being developed under Vision 2030. Foreign ownership is allowed in certain areas, but government approval is required.

 Economic and Commercial Zones

The Saudi government has created some economic and free zones, where foreign companies can buy land for commercial and industrial purposes — such as King Abdullah Economic City

Conditions & Requirements (2025)

In Saudi Arabia, foreign individuals or companies have to fulfill certain repeated conditions and official requirements to buy property. These conditions ensure that the investment is legal, secure, and development-focused.

Valid Iqama (Residency Permit)

If a foreign individual wants to buy land in Saudi Arabia, he must have a valid Iqama. No one is allowed to own land without Iqama.

Investment License (For Companies)

A foreign company or investor has to obtain a license from the Ministry of Investment. Without this license, business or commercial land cannot be acquired.

Government Approval

In every case, whether it is an individual or a company, official approval is required. This approval is obtained from the Ministry of Investment or the Housing Authority, and it includes a review of documents, background verification, and property location.

Maximum Size Limit

Only a limited amount of land is allowed for residential purposes, such as up to 300 square meters. If you are taking it for commercial and mega projects, then a separate condition applies.

Use Within Time Limit.

After approval, you must start using the land or property within a specified period, i.e. start construction or launch business activity. Failure to use it on time may result in cancellation of the approval.

Clean Legal & Financial Record

The criminal record of the individual or company buying the property should be clean and its financial background should be strong. Those with a history of default or fraud may get rejected.

Step-by-Step Buying Process

If you're planning to purchase property in Saudi Arabia, it’s crucial to follow the seven essential steps below. Proper completion of each step is necessary to secure ownership.

1.Check Your Eligibility

 Begin by confirming whether you are legally allowed to buy property. You’ll need a valid residency permit (Iqama) or an approved investment license. It's also essential to review any limitations related to nationality or geographic area.

2.Find a Licensed Real Estate Agent

 Work with a certified property dealer or an authorized real estate agency that can guide you toward approved properties. Unlicensed brokers should be avoided to prevent legal issues. Request an Initial Offer Once you've selected a property,

obtain an initial offer from the seller or developer

This document should clearly state the property's size, location, price, and conditions. Foreign buyers are required to obtain ownership clearance from the Ministry of Investment or the Housing Authority. This step includes a thorough verification of your submitted documents. Review and Translate

Legal Documents

 All related documents—such as the title deed, ownership history, site survey, and purchase agreement—must be legally reviewed and translated into Arabic.

Consulting a lawyer is strongly recommended

Once all verifications are complete, initiate the final payment process. The property title is then officially transferred to your name, confirming legal ownership. The seller will then officially transfer the property title to your name, confirming your legal ownership.

Register Your Property Finally

 register the property with the Saudi Real Estate Authority. This registration serves as official documentation of your ownership.

Benefits of Buying Property in Saudi Arabia

Purchasing real estate in Saudi Arabia serves not only as a pathway to residency but also as a strategic long-term investment opportunity. Some of the key benefits are briefly explained below.

Long-Term Investment Value

Saudi Arabia’s real estate market is experiencing rapid growth, and properties purchased today have the potential to yield significantly higher value and returns over time.

Residency Benefits

If you're planning to establish residence in Saudi Arabia, property ownership can serve as a credible indicator of your local residency status. In some cases, it can also facilitate residency or visa.

Strategic Location for Business

Located where Asia, Africa, and Europe converge, Saudi Arabia stands as a strategic commercial nexus—drawing global enterprises and enabling seamless cross-regional trade. Investing in property here can provide a solid foundation for entrepreneurial and commercial ventures.

Vision 2030 Initiatives Boosting the Real Estate Market

The Saudi government’s Vision 2030 plan is opening new doors for real estate and investment. Mega projects such as the construction of new cities such as Neom, and facilities for foreign investment are making this sector even more attractive.

Risks and Legal Considerations

Investing in real estate within Saudi Arabia presents promising prospects, yet it also involves distinct challenges and legal protocols that foreign investors must navigate with diligence.

1. Limited Ownership Rights in Specific Zones Foreign nationals are prohibited from acquiring full ownership in certain locations. Typically, access is restricted to lease-based contracts or partnerships through joint ventures. It's vital to confirm the nature of ownership permitted before entering any binding agreement.

2. Dynamic Regulatory Environment Property laws in Saudi Arabia are in a state of evolution, particularly under the Vision 2030 framework. Regulations valid today may be revised or replaced tomorrow. Monitoring official policy updates is key to ensuring continued legal alignment.

3. Importance of Legal Support Real estate documents are commonly drafted in Arabic and governed by a legal framework that may be unfamiliar to overseas buyers. Seeking assistance from a qualified legal advisor or real estate attorney helps reduce errors and simplifies legal processes.

4. Potential for Fraudulent Transactions As with global property markets, risks such as unauthorized agents or deceptive listings are present. To safeguard your investment, always engage with government-certified professionals and handle documentation through recognized and verified channels.

Conclusion

Buying property in Saudi Arabia is becoming more accessible for foreigners, especially with the government’s ongoing reforms under Vision 2030. Whether you are an expatriate, an investor, or a business owner, there are clear opportunities to own land or property in specific zones — provided you meet the required conditions.

However, it’s important to proceed carefully. Legal approvals, proper documentation, and understanding the local laws are essential steps to ensure your investment is secure and beneficial.

With the right guidance and due diligence, owning real estate in Saudi Arabia can be a smart long-term move — both for personal use and financial growth.