Article 5 of the Real Estate Ownership by Non-Saudis Law
المادة 5 من نظام تملك غير السعوديين للعقار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 السارية التي تمنح غير السعودي حقوقاً أفضل فيما يتعلق بتملك العقار واكتساب الحقوق العينية الأخرى عليه.
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 5 explained in plain English
This article is a rule protecting existing rights: the Law is not to be applied in a way that weakens or removes rights that another regulation gives a non-Saudi. It names three matters, each of which remains in force:
- The Premium Residency Law: its provisions on ownership remain in force and are not affected by this Law.
- The regulation of real estate ownership by GCC citizens in the member states, for residence and investment.
- Other laws in force that give a non-Saudi better rights in owning real estate or acquiring other real rights in it.
In practice, a person who enjoyed a wider right under one of these regulations does not lose it because of the restrictions in this Law, such as the geographic scope or the ownership limits set by the Council of Ministers. What counts is the better right that the other regulation provides.
But the article does not state the content of those laws or the rights they give, so each of them must be consulted to learn the extent of the right it provides. This article comes after Article 4 on listed companies and funds, and before Article 6, which provides that ownership creates no rights or privileges beyond the rights lawfully held by an owner of the real right.
Anyone who holds premium residency or the nationality of a GCC state and wants to know which regulation best suits their position should consult a lawyer specialized in real estate matters.
Practical example
Khalid is a citizen of a GCC state who wants to buy land in Dammam to build a home. The Real Estate Ownership by Non-Saudis Law does not cancel what the regulation of GCC citizens' real estate ownership for residence and investment provides, so his position is also examined under that regulation.
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 5 of the Real Estate Ownership by Non-Saudis Law
Does the non-Saudi ownership law cancel the ownership rights of premium residency holders?
No, the article provides that applying the Law does not affect the provisions of the Premium Residency Law.
Is a GCC citizen subject to this Law's restrictions on owning real estate?
The article provides that the Law does not affect the regulation of GCC citizens' real estate ownership for residence and investment, so that regulation remains in force.
What if another law gives a foreigner a wider ownership right?
This Law does not affect laws in force that give a non-Saudi better rights in owning real estate and acquiring real rights in it.
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 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 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.