The Ministry of Investment unveiled an amendment to the system enabling non-Saudis to own real estate in the Kingdom, which aims to define the conditions and controls for non-Saudis owning and investing real estate inside the Kingdom.
In this context, the Ministry put forward the system to solicit opinions regarding it, and the following are the most prominent details of this system:
System goals
The project aims to raise and improve the efficiency and effectiveness of the procedures and controls related to the ownership or use of real estate by non-Saudis with a natural and legal capacity in cities and economic areas in the Kingdom targeted for development, including the cities of Makkah and Madinah.
The target group of the system
The system targets non-Saudi natural and legal persons, residents and non-residents, and citizens of the Gulf Cooperation Council countries, both natural and legal persons.
System Benefits
The system aims to enhance economic development, increase the real estate sector’s contribution to the Kingdom’s GDP, increase demand for real estate, reduce foreign transfers, contribute to achieving a balance between supply and demand for real estate, stimulate tourism, and increase employment rates for workers in the field of construction and real estate.
Granting a non-Saudi the right to own real estate
The law stipulates that a non-Saudi of natural or legal persons authorized by the competent authority has the right to acquire the right of ownership, easement or usufruct over real estate, including its investment, in accordance with the controls, conditions, and rules specified by the regulations for this system, provided that an order is issued by The Prime Minister is a regulation regulating the usufruct right in the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah.
Granting foreign representations the right to own the official residence
The system affirmed that foreign representations accredited in the Kingdom may – on the basis of reciprocity – own the official headquarters and residence for their head and members, and international and regional bodies may, within the limits of the agreements governing them, own their official headquarters, all on the condition of obtaining a license from the Minister of Foreign Affairs.
Availability of ownership in Mecca and Medina
The system stipulates that it is not permissible by any means other than inheritance to acquire the right of ownership, usufruct or easement over real estate located within the boundaries of the Two Holy Mosques, for persons prohibited from entering them, and the regulations specify the necessary provisions for this.
The system confirmed that this article correctly grants the right of ownership and the right of usufruct on real estate within the borders of the Kingdom, including Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah, as the current system stipulates the prohibition of this right.
The system clarified that this article confirms the powers of independent bodies such as the Royal Commission for Makkah and the Holy Sites, the Authority for Economic and Special Cities and Zones, and others, to exercise their powers related to rights over real estate, and the executive regulations are set to specify the terms and conditions of these rights.
The provisions of the project do not conflict with the previous regulations
The system prohibits notaries or any other competent authority from documenting any behavior that does not comply with the provisions of this system, and the application of the provisions of this system does not prejudice the property rights that were arranged for non-Saudis under previous systems, and the provisions of this system must be implemented following its entry into force when the ownership of the property is transferred, and no The application of the provisions of this system prejudices the benefits included in the rules governing the ownership of real estate for citizens of the countries of the Cooperation Council for the Arab States of the Gulf.
The application of the provisions of this system also does not prejudice the acquisition of the right of ownership or any other original right in rem over real estate through inheritance, the regulations and decisions of the Council of Ministers and lofty orders that prevent ownership in some locations, and the rights and benefits included in the relevant special laws and regulations.
This system is scheduled to replace the system of ownership of real estate by non-Saudis in the Kingdom, issued by Royal Decree No. (M/22) dated 12/7/1390 AH, provided that this system is published in the Official Gazette, and shall be enforced 90 days following the date of its publication. , provided that a regulation for this system is issued by order of the Prime Minister.
