In force
Real Estate Ownership by Non-Saudis Law
نظام تملك غير السعوديين للعقار
The Law on Real Estate Ownership by Non-Saudis of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations.
- Articles
- 15
- In force
- 15
- Amended
- 0
- Issued
- 19/1/1447 AH
Issued by: مرسوم ملكي رقم (م/14) وتاريخ 1447/1/19هـ · قرار مجلس الوزراء رقم (42) وتاريخ 1447/1/13هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Real Estate Ownership by Non-Saudis Law by topic
Articles of the Real Estate Ownership by Non-Saudis Law
- Article 1The article defines the Law's key terms, chiefly "non-Saudi", which covers non-Saudi individuals, companies, non-profit entities and any legal person the Council of Ministers specifies.
- Article 2The article allows a non-Saudi to own real estate and real rights within a geographic scope set by the Council of Ministers, a resident to own one home outside it, and limits ownership in Makkah and Madinah to Muslims.
- Article 3The article allows an unlisted Saudi company with non-Saudi shareholders to own real estate within the geographic scope, and to own what it needs for its activities and its workers' housing inside or outside it.
- Article 4The article allows listed companies, investment funds and licensed special purpose entities to own real estate in the Kingdom, including Makkah and Madinah, under the Capital Market Law and the Capital Market Authority's controls.
- Article 5The article provides that applying the Law does not affect the Premium Residency Law, the GCC citizens' real estate ownership regulation, or other laws that give a non-Saudi better ownership rights.
- Article 6The article provides that a non-Saudi's ownership of real estate or real rights gives no rights or privileges other than those lawfully held by an owner of the real right.
- Article 7The article allows diplomatic missions, on a reciprocal basis, to own their official premises and housing for their head and members, and international and regional bodies to own their official premises, with the Ministry of Foreign Affairs' approval.
- Article 8The article requires a non-Saudi company or entity to register with the competent body before owning, and makes a non-Saudi's ownership valid once registered in the real estate register.
- Article 9The article imposes a fee collected by the Authority on the value of a non-Saudi's disposition of real rights in real estate, not exceeding 5% of that value, without prejudice to other fees and taxes.
- Article 10The article punishes violations of the Law or its regulations with a warning or a fine of up to 5% of the value of the real right, capped at SAR 10 million, and refers the table of violations to the regulations.
- Article 11The article creates one or more committees by decision of the Authority's board to examine violations and impose the Article 10 penalties, and allows objecting to their decisions before the Administrative Court within 60 days.
- Article 12The article punishes a non-Saudi who deliberately gives false or misleading information that leads to ownership with a fine of up to 5% (capped at SAR 10 million) and sale of the real right, through the Public Prosecution and the competent court.
- Article 13The article requires the Council of Ministers to issue the regulations within 180 days of the Law's publication, and lists what they set: procedures, requirements for non-residents, the fee amount and zero-rated dispositions.
- Article 14The article provides that the Law replaces the Law of Real Estate Ownership and Investment by Non-Saudis issued by Royal Decree No. M/15 dated 17/4/1421 AH, and repeals any provisions that conflict with it.
- Article 15The article sets the date the Law takes effect: 180 days after its publication in the Official Gazette.