Saudi Arabia Allows Foreign Investors to Own and Sell Real Estate Under Specific Conditions
Riyadh, The Gulf Observer: The Ministry of Investment of Saudi Arabia has announced that foreign investors are now permitted to own and sell real estate, provided that their activities align with approved investment purposes. This move is aimed at facilitating business operations while ensuring compliance with regulatory conditions.
According to the ministry, foreign investors seeking to own real estate must meet several key conditions. Most notably, the property must be located outside the boundaries of the holy cities of Makkah and Madinah. Additionally, the purchase and sale of real estate must not be intended for commercial speculation, which refers to high-risk transactions undertaken with the expectation of profiting from price fluctuations.
A recent report from the ministry outlines that foreign investment firms must obtain prior approval to acquire real estate for specific purposes, including personal residences, industrial facility headquarters, company administrative offices, employee housing, and storage facilities.
The Ministry of Investment has clarified that there is no financial fee associated with obtaining this service. Applications can be submitted via the ministry’s e-services portal, with a processing timeline of up to five business days.
To complete the application process, investors are required to provide a set of essential documents. These include a copy of the municipality’s building permit or an official letter of approval from the municipality, a statement specifying the intended use of the land issued by a recognized authority, and a copy of the property deed.
For real estate development firms intending to execute or sell a property project, additional requirements apply. Such firms must submit a detailed cost report from an engineering office accredited by the Saudi Council of Engineers. The total project cost must be at least SAR 30 million, covering both land acquisition and construction. Furthermore, the property must be situated outside the limits of Makkah and Madinah, and the investor must commit to utilizing the land within a five-year period.
This initiative is part of Saudi Arabia’s ongoing efforts to attract foreign investment while maintaining regulatory oversight to prevent speculative activities in the real estate sector. The new measures align with the kingdom’s broader economic diversification strategy under Vision 2030.
