Saudi Arabia opens doors to foreign investors in real estate

The Ministry of Investment in Saudi Arabia has revealed that foreign investors are now allowed to own and engage in the buying and selling of real estate in the country.

According to a report by Saudi Gazette, this opportunity is provided for investment purposes.

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However, the ministry has outlined certain conditions for foreign investors to participate in these activities. The most notable conditions include:

• The property must be located outside the boundaries of the holy cities of Makkah and Madinah.
• The purpose of buying and selling real estate should not be for commercial speculation, which refers to the practice of purchasing assets (such as stocks, commodities, or real estate) with the expectation of profiting from price fluctuations. Speculators typically take on high-risk, high-reward investments to make quick gains.

The ministry also clarified that foreign investor firms must obtain approval to own real estate for personal residences, industrial facilities, company headquarters, employee residential facilities, and warehouses.

Additionally, there is no financial fee for this service. It is provided through the ministry’s e-services portal, and approval is granted within five business days.

Document submission requirements

Interested entities are required to submit:

• A copy of the municipality’s building permit, a letter of approval from the municipality, or a statement indicating the intended use of the land, issued by an official authority.
• A copy of the deed for the property to be acquired.

Real estate development companies wishing to implement or sell a real estate project must submit a report from an engineering office accredited by the Saudi Council of Engineers, detailing the total project cost. The cost should be no less than SR30 million for both land and construction, and the project must be located outside Makkah and Madinah. The development must be utilized within five years.