Article 8 of the Real Estate Ownership by Non-Saudis Law
المادة 8 من نظام تملك غير السعوديين للعقار
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على الشركة غير السعودية، أو الكيان غير السعودي غير الربحي، أو الكيان غير السعودي الذي يحدد بقرار من مجلس الوزراء -المشار إليهم في الفقرات (2) و(3) و(4) من تعريف غير السعودي- التسجيل لدى الجهة المختصة قبل تملك العقار أو اكتساب الحقوق العينية الأخرى على العقار في المملكة، وذلك وفق ما تحدده اللائحة.
2- يكون تملك غير السعودي للعقار أو اكتساب الحقوق العينية الأخرى على العقار في المملكة صحيحاً بعد تسجيله لدى السجل العقاري وفقاً للأحكام المنظمة لذلك.
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 8 explained in plain English
This article sets two important procedural requirements:
First: prior registration for certain entities. The entities referred to in paragraphs 2, 3 and 4 of the definition of "non-Saudi" in Article 1, namely:
- 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.
must register with the competent body before owning real estate or acquiring other real rights in it, as the regulations provide. This obligation does not cover the non-Saudi individual in paragraph 1 of the definition, because the article does not mention them. The article does not name the competent body or the registration procedures, but refers to the regulations.
Second: validity of ownership is tied to the real estate register. Any non-Saudi's ownership of real estate or acquisition of other real rights in it is valid once registered in the real estate register, under the provisions that govern it. This condition is general and covers all categories of non-Saudi, individuals and entities.
In practice, signing the contract and paying the price are not enough on their own for ownership to be valid under this article; registration in the real estate register is required. So before completing any transaction, a buyer should consult a lawyer specialized in real estate matters.
Practical example
A foreign charity wants to buy a building in Riyadh. Under paragraph 1 it must register with the competent body before buying, as the regulations provide, and then its ownership is valid only once it is registered in the real estate register under paragraph 2.
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 8 of the Real Estate Ownership by Non-Saudis Law
Must a foreign company register before buying property?
Yes, a non-Saudi company must register with the competent body before owning real estate or acquiring real rights in it, as the regulations provide.
When does a foreigner's ownership of real estate become valid?
Ownership is valid once registered in the real estate register under the provisions that govern it.
Must a non-Saudi individual register in advance with the competent body?
Paragraph 1 concerns the company, the non-profit entity and the entity specified by the Council of Ministers and does not mention the individual, but the condition of registration in the real estate register in paragraph 2 covers everyone.
Articles this article refers to
More articles on Registering Non-Saudi Ownership and Fees
- Article 9
The 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.
دون إخلال بأي رسوم أو ضرائب مقررة نظاماً، يُفرض رسم تستوفيه الهيئة على قيمة تصرف غير السعودي بالحقوق العينية على العقار في المملكة لا يزيد قدره على (5 %) من تلك
- Article 13
The 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.
1- يصدر مجلس الوزراء اللائحة -بناءً على اقتراح من مجلس إدارة الهيئة وموافقة مجلس الشؤون الاقتصادية والتنمية- خلال (مائة وثمانين) يوماً من تاريخ نشر النظام في ال
- Article 14
The 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.
يحل هذا النظام محل نظام تملك غير السعوديين للعقار واستثماره، الصادر بالمرسوم الملكي رقم (م / 15) وتاريخ 17 / 4 / 1421هـ، ويلغي ما يتعارض معه من أحكام.
- Article 15
The article sets the date the Law takes effect: 180 days after its publication in the Official Gazette.
يعمل بالنظام بعد (مائة وثمانين) يوماً من تاريخ نشره في الجريدة الرسمية.
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.