Guide to Property Ownership for Non-Saudis in Saudi Arabia

Everything You Need to Know About Property Ownership for Non-Saudis

Thanks to recent developments introduced by Saudi Arabia, owning property has become possible for non-Saudis under specific conditions. This move significantly boosts investment opportunities in a rapidly growing real estate market. This article explores the requirements, procedures, and benefits of property ownership for non-Saudis in Saudi Arabia.

What Are the Advantages of Property Ownership for Non-Saudis in Saudi Arabia?

Owning property as a non-Saudi comes with numerous benefits, making the Saudi real estate market a lucrative and appealing investment destination.

1. Investing in a Growing Market
   Saudi Arabia’s real estate market has witnessed remarkable growth in recent years. According to the Saudi Capital Market Authority, the market value of real estate transactions increased by 21% in 2023 compared to the previous year, reaching approximately SAR 300 billion. These figures highlight the market’s appeal to both foreign and local investors. Explore a detailed market analysis in AqarApp’s Mid-Year 2024 Data Report.
2. Government Incentives
   The Saudi government has introduced numerous incentives to encourage property ownership by non-Saudis, attracting more foreign investors. The World Bank’s *Ease of Doing Business Index* reflects Saudi Arabia’s progress, showing a 30-place advancement since 2019 due to ongoing reforms supporting investment environments.
3. Variety of Property Options
   Investors can explore diverse opportunities across residential, commercial, and industrial properties. Commercial properties account for 15% of the total real estate market in Saudi Arabia, offering investors tailored options to meet their financial goals.
4. Simplified Procedures Through Digital Platforms
   Platforms like Absher enable non-Saudis to apply for property ownership electronically, saving time and ensuring quick, hassle-free processing.

Requirements for Non-Saudis to Own Property in Saudi Arabia

The requirements vary depending on whether the individual is a resident of Saudi Arabia or an external foreign investor. Below are the general conditions:

1. Residency Status
   Non-Saudis must have a valid residency permit (Iqama) to own property in Saudi Arabia. Learn more about the Premium Residency Program for property owners.
2. Purpose of Ownership
   The property must be used for personal residence or a specific commercial investment. However, ownership in sensitive areas, such as military zones, is prohibited.
3. Government Permits
   Certain properties, particularly land and commercial real estate, require government permits based on the type of property and ownership purpose.
4. Ministerial Approval
   In some cases, approval from the Ministry of Interior or Ministry of Investment is required, especially for commercial or investment purposes.

Procedures for Non-Saudis to Own Property in Saudi Arabia

The process for non-Saudis to own property involves several steps to ensure compliance with legal requirements:

1. Consult an Authorized Entity
   It is recommended to work with a licensed real estate broker via AQAR App or a legal office to ensure compliance with regulations.
2. Apply for Ownership Permit
   Submit a formal application to the Ministry of Investment, detailing personal information and property type.
3. Obtain Official Approval
   Authorities review the application, and upon meeting all conditions, they issue an official ownership permit.
4. Register the Property
   Following approval, the property must be registered with the Ministry of Justice to confirm ownership.

Digital Steps via Absher Platform

Residents can submit ownership applications using their Absher accounts by following these steps:

1. Log in to Absher: Create an account and select the “Property Ownership for Residents” service.
2. Submit Ownership Request: Fill out the required details, including personal and property information.
3. Attach Required Documents: Provide copies of your residency permit, current lease contract, and other supporting documents to justify ownership.
4. Approval and Documentation: After reviewing the application, authorities issue the ownership permit, and the property is documented accordingly.

FAQs

Q: Can a non-Saudi own property in Saudi Arabia?
A: Yes, if they meet all the requirements.

Q: Can a resident own property in Saudi Arabia?
A: Yes, provided they fulfill the necessary conditions.

Q: How long does it take to process a property ownership application?
A: The timeframe varies from a few days to several months, depending on the property size and other factors.

Q: Does buying property in Saudi Arabia grant residency?
A: Yes, non-Saudis can obtain *Premium Residency* by purchasing a property worth at least SAR 4 million, according to the Premium Residency Center.

Conclusion

Property ownership for non-Saudis in Saudi Arabia offers a promising investment opportunity, thanks to new regulations and flexible policies that support investors. With the rising demand from foreign investors, Saudi Arabia continues to set an inspiring model for attracting investments and fostering real estate sector growth in line with the Vision 2030 economic goals.