Saudi Arabia Allows Foreign Investors to Buy and Sell Real Estate Under New Rules
The Saudi Ministry of Investment has announced that foreign investors can now own and sell property in the Kingdom, but they must follow certain rules.
Key Conditions:
- Location Restrictions: Foreign investors cannot buy or sell property in the holy cities of Makkah and Madinah.
- No Short-Term Speculation: Investors cannot purchase real estate just to resell it quickly for profit.
Permitted Uses:
Foreign companies can buy property for:
- Offices or company headquarters
- Factories or industrial sites
- Staff housing
- Warehouses
- Personal homes
However, they must first get approval from the Ministry of Investment.
Required Documents:
- A copy of the building permit from the local municipality
- An approval letter or statement explaining how the land will be used
- A copy of the property deed
Additional Rules for Real Estate Developers:
- Developers must submit a cost report from a certified engineering firm.
- The total cost of land and construction must be at least 30 million Saudi Riyals (SR30 million).
- Projects must be outside Makkah and Madinah.
- Developers must start using the land within five years.
These new rules aim to attract global investors while ensuring real estate projects support Saudi Arabia’s long-term development goals.
