According to preliminary explanations, the new law is expected to provide a framework that is more extensive and inclusive than the current real estate ownership system.
For foreigners, this is exciting news. According to initial interpretations, the new Saudi law will grant foreigners the right to own properties nationwide, including in regions like Mecca and Medina.
Moreover, these new property rights will cover various types, including commercial, residential, and agricultural properties.
In the past, Saudi Arabia imposed strict restrictions on real estate ownership for non-Saudi nationals.
However, since 2021, Saudi Arabia issued a directive allowing legal residents who are not Saudi citizens to purchase property under certain conditions.
These restrictions include: Only foreign nationals holding "General Residency" or "Muqeem" (Special Residency) are eligible to own real estate.
Ownership of land is prohibited, but a 99-year lease can be obtained. Ownership of property in holy cities like Mecca and Medina is not allowed, but a 99-year lease can be obtained. The property should be used only for residential purposes and may require additional permits.
Additionally, approval from relevant authorities is needed. Ownership is not allowed in protected areas such as border and military zones. Furthermore, the real estate area should not exceed 3,000 square meters, and each foreign individual is limited to purchasing one property.
For foreign individuals looking to invest in Saudi Arabia, these upcoming changes in real estate laws will provide more opportunities and choices.
While specific terms have not been disclosed yet, this change indicates an opening of more real estate sectors for foreign investors and offers them broader investment possibilities.
This move is part of Saudi Arabia's effort to diversify its economy, aiming to attract more foreign investors and promote economic growth.
For foreign property buyers, this will open new opportunities, allowing them to participate in Saudi Arabia's real estate market and gain profits from it.
Moreover, Saudi Arabia has taken other measures to attract foreign investors, such as streamlining the business registration process, improving the legal framework, and providing more business opportunities. These efforts are aimed at enhancing Saudi Arabia's international competitiveness and fostering sustainable economic development.