Ownership & Residency Guide
Investing in Saudi Arabian real estate involves different rules for different people. This guide breaks down what you need to know about property ownership and residency status.
Here, we clarify the privileges and limitations for Saudi citizens, expat residents, Premium Residency holders, and foreign investors abroad – so you can move forward with a clear understanding of your options.
Non-Resident Foreign Investors
Expatriate Residents
If you are a foreigner living in Saudi Arabia with a valid residency permit (Iqama), you have some property ownership rights, but with certain conditions. Traditionally, a resident expatriate was permitted to acquire one residential property for personal use (such as a home for your family), usually with official permission and provided it's outside the holy cities.
Under recent reforms, foreign residents can also invest in designated investment zones in major cities, potentially owning additional properties in these approved areas. However, even with these changes, direct ownership of property in Makkah and Madinah remains off-limits to standard expatriate residents.
In short, as a resident you do have avenues to buy property, but the scope is limited compared to citizens – and we help ensure you follow the proper procedures every step of the way.
Foreign Companies
Foreign companies and investment funds can acquire properties for business use in Saudi Arabia. The government permits corporate entities to purchase real estate in approved areas, subject to certain conditions and regulatory approvals from the Ministry of Investment (MISA).
Some investors choose to participate via corporate structures or real estate funds for larger ventures. Navigating these options requires careful attention to regulations, and Samt Real Estate provides specialized advisory services for corporate clients.
Saudi Nationals
Saudi citizens enjoy the most freedom when it comes to real estate ownership. If you hold Saudi nationality, you have the right to purchase property anywhere in the country – including full ownership of land and homes in all cities (Makkah and Madinah included).
Aside from general zoning and building regulations that apply to everyone, there are no special restrictions on Saudi buyers. Your path to owning property is straightforward and unrestricted.
Investing in Makkah and Madinah
We understand that for many investors, especially Muslims, owning a property in Makkah or Madinah is more than just a transaction – it's a lifelong dream and a deeply personal aspiration. Samt Real Estate honours that sentiment by ensuring any venture into these holy cities is handled with the utmost respect and legal diligence.
By law, only Saudi citizens may own property outright in Makkah and Madinah. Foreign buyers (including expatriates and Premium Residency holders) cannot hold freehold title in these two cities. Instead, the law permits international investors to acquire long-term usufruct rights – essentially, the right to use and benefit from a property for a defined period, often up to 99 years. These rights are secured through official contracts notarised by the authorities, and can be bought, sold, or transferred during their term, much like a leasehold property in other countries.
In practice, this means that as a non-Saudi you can invest in apartments or other units in Makkah and Madinah – for example, a flat in a serviced residence near the Holy Mosque in Makkah – but your "ownership" will be time-limited rather than perpetual. You might hold the rights for decades, enjoying rental income or personal use (and even the ability to resell that right), yet the underlying land remains under a special trust as required by Saudi law.
Samt Real Estate will guide you through these nuances and ensure that any holy city investment you pursue is fully compliant and secure. We help you understand the fine print so you can embrace the opportunity of owning in these revered cities without uncertainty. In every case, we operate with full transparency and strictly within legal channels – you'll know exactly what you're getting into. That way, you can fulfil your dream of a foothold in the holy cities with complete peace of mind.
Whatever your status, we're here to help
Samt Real Estate is here to simplify the path to property ownership in Saudi Arabia. We'll give you clarity on the regulations and confidence in your decisions. If you have questions about your unique situation, reach out to us.