Article 1 of the Real Estate Ownership by Non-Saudis Law
المادة 1 من نظام تملك غير السعوديين للعقار
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها:
النظام: نظام تملك غير السعوديين للعقار.
اللائحة: اللائحة التنفيذية للنظام.
الهيئة: الهيئة العامة للعقار.
غير السعودي:
1- الشخص ذو الصفة الطبيعية الذي لا يحمل الجنسية السعودية.
2- الشركة غير السعودية.
3- الكيان غير السعودي غير الربحي.
4- أي شخص ذي صفة اعتبارية غير سعودي آخر يحدد بقرار من مجلس الوزراء.
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 is the definitions article. It sets the meaning of the key words wherever they appear in the Law, so they are not read in their general sense but in the sense fixed here.
- The Law: the Real Estate Ownership by Non-Saudis Law.
- The Regulations: the Implementing Regulations of the Law, to which many details are referred.
- The Authority: the General Authority for Real Estate.
The most important definition is "non-Saudi", which is not limited to individuals but covers four categories:
- A natural person (an individual) who does not hold Saudi nationality.
- A non-Saudi company.
- A non-Saudi non-profit entity.
- Any other non-Saudi legal person specified by a decision of the Council of Ministers.
The importance of this definition appears in Article 2, which allows a non-Saudi to own real estate or acquire other real rights in it within the geographic scope specified by the Council of Ministers, and limits ownership in Makkah and Madinah to a Muslim natural person. So knowing which category a person or entity falls into is the first step in knowing which provisions apply to it.
Anyone who is unsure whether they fall into one of these categories, such as a foreign entity of a special nature, should consult a lawyer specialized in real estate matters.
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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Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 1 of the Real Estate Ownership by Non-Saudis Law
Is a foreign company a "non-Saudi" under this Law?
Yes, a non-Saudi company is one of the four categories covered by the definition of "non-Saudi" in this article.
Does the definition include foreign non-profit entities?
Yes, a non-Saudi non-profit entity is expressly listed among the categories of non-Saudi.
Which body is meant by "the Authority" in the Law?
The General Authority for Real Estate.
Can other entities be added to the definition of non-Saudi?
Yes, the Council of Ministers may specify by decision any other non-Saudi legal person to be included in the definition.
More articles on Foreign Ownership of Real Estate
- Article 2
The 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.
1- لغير السعودي تملك العقار أو اكتساب الحقوق العينية الأخرى على العقار في المملكة، وذلك في النطاق الجغرافي الذي يحدده مجلس الوزراء بموجب الفقرة (2) من هذه الماد
- Article 5
The 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.
لا يخل تطبيق النظام بأحكام نظام الإقامة المميزة أو تنظيم تملك مواطني دول المجلس للعقار في الدول الأعضاء بمجلس التعاون لغرض السكن والاستثمار أو الأنظمة الأخرى ال
- Article 6
The 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.
لا يترتب على تملك غير السعودي للعقار أو اكتساب الحقوق العينية الأخرى على العقار في المملكة؛ أي حقوق أو امتيازات عدا الحقوق المقررة لمالك الحق العيني نظاماً.
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.