Can Foreigners Buy Property in Saudi Arabia? A Comprehensive 2025 Guide

Yes, foreigners can buy property in Saudi Arabia, but specific rules and requirements apply. With the Kingdom's rapid economic transformation under Vision 2030, Saudi Arabia has become an increasingly attractive destination for international property investors. This guide will provide a detailed, up-to-date overview of how foreigners can navigate the property market in Saudi Arabia in 2025.

Legal Framework for Foreign Property Ownership in Saudi Arabia

As of 2025, Saudi Arabia has restructured its investment laws to make property ownership more accessible to foreign investors. The Investment Law introduced in February 2025 expands opportunities for international buyers by allowing property ownership in areas like King Abdullah Economic City, NEOM, and other major urban developments.

Key Highlights:

• Ownership in Major Cities: Foreigners can now own property in designated areas, including Riyadh, Jeddah, and Dammam.
• Exclusions: Property ownership in the holy cities of Mecca and Medina remains prohibited.
• Streamlined Licensing: Investors must secure approval from the General Authority of Real Estate.

These legal reforms align with Saudi Arabia's mission to attract foreign investment and diversify its economy.

Read more on property ownership in Saudi Arabia

Premium Residency Program for Foreign Property Investors

The Premium Residency Program is a cornerstone for foreigners seeking long-term residence while investing in Saudi property. Updated in 2024, this program offers multiple options tailored to various investor profiles:

• Permanent Residency: A one-time fee of SAR 800,000 grants indefinite residency.
• Temporary Residency: Annual fees start at SAR 100,000, with durations ranging from 1 to 5 years.
• Residency Through Real Estate Ownership: Invest a minimum of SAR 4 million (approximately £830,000) to secure a residency permit.

Note: Residency is valid only while the investor retains ownership of the property.

Read our full guide on Visa & Residency in Saudi Arabia

Why Invest in Saudi Arabia’s Real Estate Market?

1. Competitive Pricing

The Saudi property market offers better value compared to global hubs like Dubai. For instance, villa prices in Riyadh average SAR 5,600 per square meter, a fraction of Dubai’s luxury market.

2. Booming Infrastructure

Government-backed mega-projects such as the Riyadh Metro and Jeddah Tower enhance the appeal of urban living and elevate property values.

3. Economic Growth

Saudi Arabia’s GDP growth and increased foreign direct investment under Vision 2030 ensure a stable and lucrative environment for real estate investment.

4. Tax Incentives

Saudi Arabia imposes no income tax on residents, making it a tax-efficient destination for high-net-worth investors.

Step-by-Step Guide for Foreigners Buying Property in Saudi Arabia

1. Choose the Right Area: Focus on designated zones like Riyadh, Jeddah, and planned smart cities like NEOM.
2. Obtain Necessary Approvals: Apply for a real estate ownership license through the General Authority of Real Estate.
3. Understand the Residency Rules: If applying under the Residency by Investment Program, ensure your property meets the minimum valuation criteria.
4. Work with Experts: Engage a local real estate agency and legal advisor to navigate regulatory requirements.
5. Finalize the Deal: Property transactions must be conducted in cash, as financing options for foreigners remain limited.

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Challenges and Considerations

• Regulatory Complexity: While processes have been simplified, compliance with Saudi regulations is essential.
• Market Research: Investors should study market trends and potential returns to make informed decisions.
• Cultural Sensitivity: Understanding the cultural and legal nuances of Saudi Arabia can smoothen the investment journey.

In 2025, Saudi Arabia stands as a dynamic and promising destination for foreign property investment. With favourable laws, residency programs, and growing market opportunities, international investors can reap significant rewards. By following this guide and consulting local experts, you can confidently navigate Saudi Arabia’s real estate market.

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