Article 2 of the Real Estate Ownership by Non-Saudis Law
المادة 2 من نظام تملك غير السعوديين للعقار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 المادة.
2- يحدد بقرار من مجلس الوزراء -بناءً على اقتراح من مجلس إدارة الهيئة وموافقة مجلس الشؤون الاقتصادية والتنمية- الآتي:
أ- النطاق الجغرافي الذي يجوز فيه لغير السعودي تملك العقار أو اكتساب الحقوق العينية الأخرى على العقار.
ب- أنواع الحقوق العينية على العقار التي يجوز لغير السعودي اكتسابها.
ج- نسب ملكية غير السعودي بحدها الأقصى في النطاق الجغرافي.
د- مدة السماح القصوى باكتساب حق الانتفاع على العقار لغير السعودي.
هـ- أي ضوابط تتصل بتملك غير السعودي للعقار أو اكتساب الحقوق العينية عليه.
3- بالإضافة إلى حقوق غير السعوديين المنصوص عليها في الفقرتين (1) و(2) من هذه المادة؛ لغير السعودي ذي الصفة الطبيعية، المقيم في المملكة بصورة نظامية، تملك عقار واحد مخصص لسكنه خارج النطاق الجغرافي المشار إليه في الفقرة (2) من هذه المادة، ويستثنى من ذلك مدينتا مكة المكرمة والمدينة المنورة. وتحدد اللائحة أحكام هذه الفقرة.
4- يقتصر حق تملك غير السعودي للعقار أو اكتساب الحقوق العينية الأخرى -المشار إليه في الفقرة (1) من هذه المادة- على العقار في مدينتي مكة المكرمة والمدينة المنورة على الشخص ذي الصفة الطبيعية المسلم.
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 2 explained in plain English
This article is the foundation of a non-Saudi's right to own real estate in the Kingdom, and sets four rules:
- The general rule: a non-Saudi may own real estate or acquire other real rights in it, but only within the geographic scope set by the Council of Ministers.
- What the Council of Ministers sets: on the proposal of the board of the General Authority for Real Estate and with the approval of the Council of Economic and Development Affairs, the Council of Ministers sets the geographic scope, the types of real rights allowed, the maximum ownership percentages for a non-Saudi, the maximum period of a usufruct right, and any other controls. These details are not in the Law itself but in the Council's decisions.
- A resident's home: in addition to the above, a non-Saudi natural person who is lawfully resident in the Kingdom may own one property for their residence outside the geographic scope, except in Makkah and Madinah. The regulations set the provisions of this right.
- Makkah and Madinah: the ownership right in the first paragraph is limited, in these two cities, to a Muslim natural person.
For the meaning of "non-Saudi", see Article 1, which covers non-Saudi individuals, companies and non-profit entities. Article 3 deals with the case of unlisted companies in whose capital non-Saudis participate, including their ownership in Makkah and Madinah within the geographic scope.
Because the precise details are issued by Council of Ministers decisions and the regulations, anyone about to buy real estate should consult a lawyer specialized in real estate matters.
Practical example
Mohammed is a non-Saudi engineer living in Riyadh with a lawful residence permit, and he wants to buy an apartment to live in with his family in a district that is not within the geographic scope set by the Council of Ministers. Paragraph 3 of the article allows him to own one property for his residence as the regulations provide, but it does not give him the right to own a second apartment for investment outside that scope.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentReal Estate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Real Estate Law lawyers
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 2 of the Real Estate Ownership by Non-Saudis Law
Can a resident of Saudi Arabia buy a home?
Yes, a lawfully resident non-Saudi natural person may own one property for their residence outside the geographic scope, except in Makkah and Madinah, as the regulations provide.
Can a foreigner own property in Makkah and Madinah?
Under the first paragraph, a non-Saudi's ownership right in Makkah and Madinah is limited to a Muslim natural person.
Who determines the areas where a non-Saudi may own?
The Council of Ministers, by decision, on the proposal of the board of the General Authority for Real Estate and with the approval of the Council of Economic and Development Affairs.
Is there a maximum ownership percentage for a non-Saudi?
Yes, the article provides that the Council of Ministers sets the maximum ownership percentages of a non-Saudi within the geographic scope, without stating the percentage itself.
More articles on Foreign Ownership of Real Estate
- Article 1
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.
يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا النظام- المعاني المبينة أمام كل منها: النظام: نظام تملك غير السعوديين للعقار. اللائحة: اللائحة التنفيذية للنظا
- 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.