Non-Saudis are allowed to own their official headquarters and residences of the head of their missions and their members under the amended Law on Real Estate Ownership and Investment by Non-Saudis.
The amended law also permits international and regional organizations to own their official headquarters, as long as they comply with the agreements governing them. It was specified in the amended law that these ownerships would be granted with a license from the Minister of Foreign Affairs.
On its Twitter account, the Ministry of Investment announced the amendments to the law and asked the public for their opinions and suggestions..
The new law will replace the existing Law on Real Estate Ownership and Investment by Non-Saudis, issued in a royal decree dated 12 Rajab 1390. The amended law will take effect 90 days after it is published in the Official Gazette. The executive regulations implementing the amended law will be issued by the prime minister.
As a result of the amendments to the law, the procedures and controls related to the ownership or use of real estate by non-Saudis with natural and legal capacity in cities and economic zones in the Kingdom targeted for development, including Makkah and Madinah, have been raised and improved.
Specifically, the amended law targets non-Saudi natural and legal persons, either residents or non-residents, as well as citizens of the Gulf Cooperation Council (GCC).
The amended law states that it is not permissible for people prohibited from entering the Holy Mosques, by any means other than inheritance, to acquire the right to own, use, or grant easements over real estate located within the boundaries of the Two Holy Mosques.
This law confirmed that this article grants the right of ownership and usufruct on real estate within the borders of the Kingdom, including Makkah and Madinah, as the current law prohibits this right.
Saudi Arabia allowed non-Saudis to invest in listed companies and own real estate in Makkah and Madinah in May 2021. All Saudi-listed companies will be exempt from the prohibition in Article No. 5 of the Law on Real Estate Ownership and Investment by Non-Saudis.
According to the Capital Market Authority, all Saudi-listed companies will be allowed to invest in Makkah and Madinah real estate. Foreigners can also invest in investment funds that own real estate in Makkah and Madinah.
