Table of Contents
• Can Expats Buy Property in Saudi Arabia in 2025?
• Foreign Property Ownership Laws in Saudi Arabia (2025)
• Real Estate Ownership Law for Non-Saudis
• Approval Process & Licensing
• Real Estate Investment Companies & Funds
• Land Ownership vs. Leasehold
• Premium Residency Program for Expats Buying Property in Saudi Arabia (2025 Guide)
• Why Expats Should Invest in the Saudi Real Estate Market in 2025
• FAQs About Buying Property in Saudi Arabia as an Expat
Can Expats Buy Property in Saudi Arabia in 2025? With Saudi Arabia’s ambitious Vision 2030 reforms in full swing, the Kingdom is opening new doors for foreign investment—including real estate. In 2025, expats are now allowed to buy property in Saudi Arabia, but only under specific conditions set by government authorities. This marks a major shift in policy, aimed at attracting global investors and residents to participate in the country’s evolving urban landscape. In this guide, we’ll walk you through the latest property ownership rules for foreigners in Saudi Arabia, eligibility criteria, where you can invest, and how to get started.
Foreign Property Ownership Laws in Saudi Arabia (2025)
As part of Saudi Arabia’s Vision 2030 economic diversification plan, the Kingdom has significantly modernized its legal and regulatory landscape to allow foreigners and expatriates to invest in real estate. However, there are clear laws and conditions that must be followed.
1. Foreign Ownership Permitted Under Specific Conditions
As of 2025, expatriates and foreign investors can legally own property in Saudi Arabia, but their eligibility depends on meeting certain requirements set by regulatory authorities. These include:
• Residency Status: Foreigners must hold legal residency (Iqama) in Saudi Arabia.
• Financial Stability: Investors or expats must demonstrate financial solvency, with minimum income or investment thresholds often required.
• Property Type & Location: There may be restrictions on the types of properties and locations foreigners can invest in—especially in areas deemed sensitive or strategically important.
2. Real Estate Ownership Law for Non-Saudis
The principal law governing foreign property ownership is Royal Decree No. M/15, supplemented by decisions from the Ministry of Investment (MISA) and the Real Estate General Authority. These laws outline the following:
• Foreigners can purchase residential, commercial, or mixed-use properties, subject to approval from the Ministry.
• Ownership in Mecca and Medina is still prohibited for non-Saudis, though long-term lease options may be available.
• In newly developed economic and investment zones, such as NEOM, The Line, and Red Sea Global projects, property purchase rules may be more relaxed to attract international investment.
3. Approval Process & Licensing
Expats and foreign companies must obtain a license or special permit through the Ministry of Investment (MISA). The application involves:
• Submitting a request outlining the property’s purpose (residential, commercial, etc.)
• Providing legal documentation such as passport, Iqama, proof of income, and business registration (if applicable)
• Awaiting ministerial approval, which can take a few weeks depending on the property’s location and type
4. Real Estate Investment Companies & Funds
Foreigners can also indirectly invest in Saudi real estate through licensed Real Estate Investment Trusts (REITs) and public real estate companies, many of which are listed on the Saudi Stock Exchange (Tadawul). This route provides a more hands-off investment approach and avoids some direct ownership limitations.
5. Land Ownership vs. Leasehold
In many parts of Saudi Arabia, especially urban developments and new smart cities, foreigners may be offered 99-year leaseholds or long-term property rights, as an alternative to freehold ownership. This model is used in projects like NEOM to ensure flexibility while maintaining national security.
Premium Residency Program for Expats Buying Property in Saudi Arabia (2025 Guide)
As of 2025, expatriates looking to buy property in Saudi Arabia have a powerful new pathway through the Saudi Premium Residency Program—specifically the Real Estate Owner Residency track. This initiative allows foreign property buyers who own residential real estate valued at SAR 4 million or more to obtain legal residency in Saudi Arabia without the need for a sponsor. The program offers multiple benefits including visa-free travel, exemption from expat fees, and the ability to live, work, and invest in Saudi Arabia. It also enables expats to bring their families, lease or rent their property, and enjoy long-term stability. With a one-time fee of SAR 4,000 and no annual renewals, this residency option is aligned with Saudi Vision 2030, which promotes real estate investment, economic diversification, and making cities like Riyadh, Jeddah, and NEOM global hubs. For expats considering real estate investment in Saudi Arabia, this residency program significantly strengthens the case for buying property in the Kingdom.
Why Expats Should Invest in the Saudi Real Estate Market in 2025
June 2025 marks a strategic window for expats looking to invest in Saudi real estate. The property market is showing robust performance—Riyadh property prices have risen by 10% year-on-year, while Jeddah has seen a 5% increase, signaling strong capital appreciation potential. With rental yields averaging 6.75% across major cities, the investment returns are attractive for both buyers and landlords. Additionally, mortgage rates have stabilized between 5–7%, making financing more accessible. Most notably, foreign ownership regulations have been significantly relaxed through the Saudi Premium Residency Program, enabling expats to legally own and profit from real estate. Coupled with rapid infrastructure expansion and mega projects like NEOM and the Red Sea Project, Saudi Arabia offers a rare combination of growth, stability, and investor-friendly reforms—making it a top emerging real estate market in 2025.
FAQs About Buying Property in Saudi Arabia as an Expat
• Can foreigners buy property in Riyadh in 2025?
Yes. Foreign nationals can purchase residential or commercial property in Riyadh if they meet legal and financial requirements and obtain approval from the Ministry of Investment.
• Can expats buy property in Mecca or Medina?
No, foreign property ownership is currently prohibited in Mecca and Medina. However, long-term leasing options may be available for non-Saudis.
• What is the minimum investment required for Premium Residency via real estate?
To qualify, expats must own residential property worth SAR 4 million or more, free of mortgages, and meet verification requirements.
• Can expats lease out the property they purchase?
Yes. Foreigners with approved ownership rights can lease out their residential properties under Saudi investment laws.
• Are there tax benefits for foreign property owners in Saudi Arabia?
While Saudi Arabia has no income tax on individuals, expats should consult a local tax advisor for any applicable real estate-related levies or fees.
