Saudi Arabia Investment Guide
Saudi Arabia's Vision 2030 has opened up significant real estate investment opportunities for foreigners. The Premium Residency program and designated investment zones allow foreign ownership in the Kingdom.
- Verify eligibility before committing to purchase
- Understand MISA approval requirements
- Be aware of longer processing times compared to UAE
- Some mega-projects are still under development
Foreign ownership in Saudi Arabia is regulated under the 2021 Foreign Ownership of Real Estate Law. While traditionally restricted, new reforms have created pathways for foreign investors.
- Premium Residency holders can own property anywhere except Makkah and Madinah
- Non-residents can own in designated zones (KAEC, NEOM, etc.)
- GCC nationals have broader ownership rights
- Corporate ownership through Saudi-registered entities
- Leasehold arrangements available in restricted areas
The property purchase process in Saudi Arabia has been modernized through digital platforms, though it remains more complex than other GCC markets.
Confirm eligibility based on residency status and property location
Verify title through the Ministry of Justice's Najiz platform
Execute notarized sales contract
Obtain Ministry of Investment approval for foreign buyers
Complete transfer at the Real Estate General Authority
Saudi Arabia has introduced Real Estate Transaction Tax (RETT) but maintains no personal income tax on rental income for individuals.
- No personal income tax on rental income
- 5% Real Estate Transaction Tax (RETT) on sales
- 15% VAT on commercial properties
- Residential properties exempt from VAT
- Zakat obligations for Muslim investors
- No property tax (equivalent municipal fees may apply)
The Saudi mortgage market is growing rapidly, with several banks offering Sharia-compliant financing options.
- Sharia-compliant financing (Murabaha, Ijara) widely available
- LTV up to 90% for Saudi nationals, 70% for residents
- Limited financing options for non-residents
- Typical terms: 20-30 years
- Real Estate Development Fund (REDF) subsidies for Saudis
Saudi Arabia offers the Premium Residency program which provides long-term residency rights including property ownership.
- Premium Residency: SAR 100,000/year or SAR 800,000 permanent
- Work without sponsorship
- Own property (except Makkah/Madinah)
- Sponsor family members
- No minimum stay requirements
Futuristic megacity project with The Line
Yield: Expected 7-10%Established economic zone with freehold
Yield: 7-8%Luxury tourism destination
Yield: Expected 6-8%Capital city with growing demand
Yield: 8-10%Commercial hub and gateway city
Yield: 7-9%This guide is for informational purposes only and does not constitute legal or financial advice. Regulations may change. Always consult with qualified professionals before making investment decisions in Saudi Arabia.