Saudi Arabia, a land of grand ambitions and endless investment opportunities, is attracting foreign investors like never before. With its investor-friendly climate and a vision set in “Saudi Vision 2030,” the Kingdom is a hotspot for those looking to invest, particularly in real estate. As a result, many foreigners are keen to understand the regulations and procedures for property ownership within the Kingdom. Let’s dive into the details.
Can Foreigners Own Property in Saudi Arabia?
The answer is a resounding “yes!” Foreign investors can own land in Saudi Arabia for various purposes, including development and investment, but there are specific conditions to meet. Here’s what you need to know:
The Conditions for Foreigners to Own Property in Saudi Arabia:
- Professional Licensing: Foreign investors must obtain approval and a license to engage in a profession, trade, or economic activity from the relevant authorities, allowing them to own property.
- Minimum Investment: The value of the investment should exceed 30 million Saudi Riyals if the ownership is for investment purposes.
- Minimum Investment Duration: The minimum investment duration is five years, starting from the date of property registration.
- Leasing in Mecca and Medina: Foreigners can lease property in Mecca and Medina for up to two years, with the possibility of extending it twice.
- Approval from the Ministry of Foreign Affairs: International organizations, corporate entities, and individuals with legal personality require approval from the Ministry of Foreign Affairs.
- Ministry of Interior Approval: Foreigners wishing to own property for personal residence need approval from the Ministry of Interior.
- Valid Residency: Foreigners must hold a valid residency permit.
- One Property Only: Foreigners are allowed to own a single property within the Kingdom.
Can Gulf Citizens Own Property in Saudi Arabia?
Saudi Arabia permits citizens of the Gulf Cooperation Council (GCC) countries to own properties within its territory, with a maximum limit of three properties. These properties should not exceed 3,000 square meters in area and must be for residential purposes. In the case of vacant land, it should be developed within six years from the registration date, and no transactions are allowed until four years after registration.
Required Documentation for Property Ownership in Saudi Arabia:
Here are the documents you’ll need to prepare:
- A letter detailing the type, size, and location of the property.
- A copy of your current passport and another copy of the first passport registered when you entered the Kingdom for the first time.
- Copies of your and your spouse’s valid residency permits.
- Copies of birth certificates for children born in the Kingdom.
- A letter from your employer to prove your income, good conduct, and behavior.
- A copy of the property deed.
- A copy of the building permit.
- A copy of the survey report.
- A copy of your last six months’ bank statements.
- A site plan to illustrate the street dimensions and building surroundings.
- A written declaration confirming the property’s intended use for residence.
How to Apply for Property Ownership as a Non-Saudi through the Absher Platform?
Follow these steps to apply for property ownership if you are a foreigner residing in Saudi Arabia:
- Log in to the Absher platform.
- Select “Absher Individuals.”
- Log in to the Absher platform.
- Under “My Services,” select “Public Services.”
- Click on “Apply for Property Ownership for Non-Saudis.”
- Review the property ownership conditions in Saudi Arabia.
- Click “Create New Request.”
- Fill in the required property information, including the property deed number, property type, location, city, district, owner’s ID, and property area.
- Submit the property deed document.
- Then, click “Next,” confirm the request, and submit it.
Conditions for Applying for Property Ownership by Non-Saudis through the Absher Platform:
- A valid residency permit is a must.
- The applicant should not have any pending arrest warrants.
- You must provide complete information about the property.
- A copy of the property deed should be included.
Foreign Ownership within the Holy Cities – Mecca and Medina:
Mecca and Medina are considered holy cities in Saudi Arabia and hold immense significance in Islam. Due to the sanctity of these cities, the regulations for property ownership by foreigners differ from those in other Saudi cities.
The Law on Foreign Ownership in Mecca and Medina:
According to Saudi Arabian law, foreigners are prohibited from owning properties in Mecca and Medina, as specified in Article 5, which states that non-Saudis are not allowed to acquire ownership, contractual rights, or usufruct rights in properties located within the boundaries of these two cities. However, there are exceptions that permit foreigners to own property in these areas under certain conditions.
“Non-Saudis” in the context of the mentioned article refers to individuals who are not Saudi citizens, foreign companies, and Saudi companies with foreign participation or ownership. There are specific exceptions for some entities and companies.
Foreign Companies and Property Ownership:
Foreign companies are allowed to own property in Mecca and Medina under certain conditions. For instance, banks and licensed real estate financing companies can own property for the purpose of financing Saudi citizens. It is also a requirement that the properties are intended for the main offices of companies or their branches, or for properties required for their business operations, as determined by the Saudi authority.
Banks and Real Estate Financing Companies:
Banks and real estate financing companies enjoy special privileges regarding property ownership in the Holy Cities. They are allowed to own properties for the purpose of financing and real estate facilitation for Saudi citizens. Among the conditions, it is stipulated that the property must be fully utilized for the mentioned purposes.
Companies Listed in the Capital Market:
Companies listed in the Saudi Capital Market Authority (CMA) are permitted to own properties in Mecca and Medina, subject to the condition that property ownership is associated with their main offices, branches, or properties necessary for their operations. The CMA sets regulations to govern such ownership.
In conclusion, Saudi Arabia offers a wealth of real estate investment opportunities for foreigners. The Kingdom’s property ownership regulations are clear, allowing foreign investors to tap into its burgeoning real estate market. While there are specific conditions and restrictions, the process is streamlined through the Absher platform, ensuring a smooth and transparent experience for those looking to invest in this land of opportunity. So, if you’re considering investing in Saudi Arabia’s real estate sector, it’s time to explore the possibilities and seize the moment!
