Article 1 of the Saudi GCC Nationals Real Estate Ownership Statute
المادة 1 من تنظيم تملك مواطني دول المجلس للعقار في الدول الأعضاء بمجلس التعاون لغرض السكن والاستثمار
The article allows GCC nationals and their wholly owned companies to rent and own built property and land for residence or investment in any member state, and treats them like that state's own nationals.
Official text (Arabic)
This article has not been amended since the law was issued.
يسمح لمواطني دول مجلس التعاون من الأشخاص الطبيعيين أو الاعتباريين (المملوكين بالكامل لمواطني دول مجلس التعاون ) باستئجار وتملك العقارات المبنية والأراضي لغرض السكن أو الاستثمار في أية دولة عضو بإحدى طرق التملك المقررة قانونًا (نظامًا) أو بالوصية أو الميراث، ويعاملون في هذا الشأن معاملة مواطني الدولة التي يقع فيها العقار.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 1 explained in plain English
This article lays down the basic rule of the regulation: GCC nationals have the right to rent and own real estate in any member state other than their own, whether built property or land.
Who benefits from this right?
- Natural persons, that is, individual nationals of the Council's states.
- Legal persons such as companies, provided they are wholly owned by nationals of the Council's states; a company in which a non-GCC person takes part, even with a small share, is not covered.
Purpose and methods: ownership or rental is for the purpose of residence or investment, and takes place by one of the methods of ownership established by law in the state where the property is located; property may also pass to the GCC national by will or inheritance.
Equal treatment: in this matter the GCC national is treated like the nationals of the state where the property is located, and so is not regarded as a foreigner in owning or renting property.
This right is not absolute: Article 2 requires the owner of land to build on it or use it within four years of its registration in his name, and Article 3 regulates when he may dispose of it. Anyone with a specific case, such as a company suspected of not meeting the full-ownership condition, would do well to consult a lawyer specialized in real estate cases.
Practical example
Khalid, a Kuwaiti citizen working in Riyadh, wanted to buy an apartment to live in with his family. Under this article he has the right to own the apartment in Saudi Arabia, and he is treated like a Saudi citizen in this. But if he wanted to own through a company in which a non-GCC partner holds a share, the article does not cover that company because it is not wholly owned by nationals of the Council's states.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 1 of the Saudi GCC Nationals Real Estate Ownership Statute
Is a GCC national entitled to own real estate in Saudi Arabia?
Yes. The article allows GCC nationals to rent and own built property and land for residence or investment in any member state, and they are treated like the nationals of the state where the property is located.
Can a GCC company own real estate?
Yes, provided it is wholly owned by nationals of the GCC states.
Can property pass to a GCC national by inheritance or will?
Yes. The article provides that ownership may be by one of the methods of ownership established by law, or by will or inheritance.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.