Law of Real Estate Ownership by Non-Saudis and its Executive Regulation

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Royal Decree No. (M/14) dated 1447/01/19 AH

By the grace of God Almighty

We, Salman bin Abdulaziz Al Saud

King of the Kingdom of Saudi Arabia

Based onArticle (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 1412/8/27 AH.

Based onArticle (Twenty) of the Law of the Council of Ministers, issued by Royal Order No. (A/13) dated 1414/3/3 AH.

Based onArticle (Eighteen) of the Law of the Shura Council, issued by Royal Order No. (A/91) dated 1412/8/27 AH.

  • After reviewing Shura Council Decision No. (33/333) dated 1446/12/27 AH.

  • After reviewingCouncil of Ministers Decision No. (42) dated 1447/1/13 AH.

  • We have decreed the following:

  • First: Approval of the Law of Real Estate Ownership by Non-Saudis, in the attached form.

  • Second: The enforcement of the law - referred to in item (First) of this decree - shall not prejudice the following:

    • 1- Real estate ownership rights that have been legally established for non-Saudis and legal persons before the enforcement of its provisions.

    • 2- What is stipulated by the legal provisions that prohibit real estate ownership in specific places, regions, and locations, taking into account the provisions of paragraph (1) of this item.

  • Third: Cancellation ofRoyal Decree No. (44) dated 1377/11/29 AH.

  • Fourth: It is incumbent upon His Highness the Prime Minister, the Ministers, and the heads of the concerned independent authorities - each within their jurisdiction - to implement this decree.

    Salman bin Abdulaziz Al Saud

  • Decision No. (42) dated 1447/01/13 AH

  • The Council of Ministers

  • After reviewing the correspondence received from the Royal Court No. 1180 dated 1447/1/5 AH, regarding the draft Law of Real Estate Ownership by Non-Saudis.

  • After reviewing the aforementioned draft law.

  • After reviewing Royal Decree No. (44) dated 1377/11/29 AH.

  • After reviewing the Law of Real Estate Ownership and Investment by Non-Saudis, issued by Royal Decree No. (M/15) dated 1421/4/17 AH.

  • After reviewingthe Statute of Real Estate Ownership by GCC Citizens in Member States of the Cooperation Council for Housing and Investment Purposes, issued by Royal Decree No. (M/22) dated 1432/4/3 AH.

  • After reviewing memoranda No. (3290) dated 1445/9/12 AH, No. (4230) dated 1445/12/7 AH, No. (150) dated 1446/1/9 AH, No. (3404) dated 1446/10/17 AH, No. (4135) dated 1446/12/23 AH, No. (4152) dated 1446/12/26 AH, and No. (47) dated 1447/1/8 AH, prepared by the Bureau of Experts at the Council of Ministers.

  • After reviewing the minutes of the Council of Political and Security Affairs No. (M S T/ 91-46/9) dated 1446/9/29 AH.

  • After reviewing the recommendation prepared by the Council of Economic and Development Affairs No. (73-46/43/D) dated 1446/10/29 AH.

  • After considering Shura Council Decision No. (33/333) dated 1446/12/27 AH.

  • After reviewing the recommendation of the General Committee of the Council of Ministers No. (312) dated 1447/1/11 AH.

  • It is decided as follows:

  • First: Approval of the Law of Real Estate Ownership by Non-Saudis, in the attached form.

  • Second: The enforcement of the law referred to in item (First) of this decision shall not prejudice the following:

  • 1- Real estate ownership rights that have been legally established for non-Saudis and legal persons before the enforcement of its provisions.

  • 2- What is stipulated by the legal provisions that prohibit real estate ownership in specific places, regions, and locations, taking into account the provisions of paragraph (1) of this item.

  • Third: Cancellation of Royal Decree No. (44) dated 1377/11/29 AH.

  • A draft Royal Decree to that effect has been prepared, its text attached hereto.

  • Fourth: Taking the legal procedures to cancel the effect ofArticle (Four) of the Statute of Real Estate Ownership by GCC Citizens in Member States of the Cooperation Council for Housing and Investment Purposes, issued byRoyal Decree No. (M/22) dated 1432/4/3 AH, related to real estate located within the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah, provided that the cancellation shall be effective from the date of enforcement of the law referred to in item (First) of this decision.

    Prime Minister

Article 1

  • In this Law, the following words and phrases shall have the meanings assigned thereto:

    • Law: Law of Real Estate Ownership by Non-Saudis.

    • Regulations: Implementing Regulations of the Law.

    • Authority: Real Estate General Authority.

    • Non-Saudi:

      • 1. A natural person who does not hold Saudi nationality.

      • 2. A non-Saudi company.

      • 3. A non-Saudi non-profit entity.

      • 4. Any other non-Saudi legal person to be determined by a Council of Ministers resolution.

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Article 2

  • 1. A non-Saudi may own real estate or acquire other rights in rem over real estate in the Kingdom within the geographical area determined by the Council of Ministers pursuant to paragraph (2) of this Article.

  • 2. The following shall be determined pursuant to a resolution by the Council of Ministers, based on a proposal made by the Authority's Board of Directors and approved by the Council of Economic and Development Affairs:

    • a) The geographical area within which a non-Saudi may own real estate or acquire other rights in rem over real estate.

    • b) The types of rights in rem over real estate a non-Saudi may acquire.

    • c) The maximum percentage of non-Saudi real estate ownership within a geographical area.

    • d) The maximum period for the acquisition of usufruct rights by non-Saudis.

    • e) Any controls relating to the ownership of real estate or the acquisition of rights in rem over real estate by non-Saudis.

  • 3. In addition to the rights of non-Saudis provided for in paragraphs (1) and (2) of this Article, a non-Saudi natural person legally residing in the Kingdom may own a single real estate outside the geographical area referred to in paragraph (2) of this Article as his residence, with the exception of the cities of Makkah and Madinah. The Regulations shall specify the relevant provisions.

  • 4. The right of a non-Saudi to own real estate or acquire other rights in rem, as provided for in paragraph (1) of this Article, within the cities of Makkah and Madinah shall be limited to Muslim natural persons.

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Article 3

  • 1. A company not listed on the Saudi Stock Exchange which is incorporated in accordance with the Saudi Companies Law and whose capital is jointly owned by one or more non-Saudi natural or legal persons may own real estate or acquire other rights in rem over real estate within the geographical area referred to in Article 2(2) of this Law, including the cities of Makkah and Madinah.

  • 2. Subject to the provision of paragraph (1) of this Article and taking into account any privileges granted under other laws, the company referred to in paragraph (1) of this Article may own real estate or acquire other rights in rem over real estate as necessary for the exercise of its activities and for the housing of its employees within or outside the geographical area referred to in Article 2(2) of this Law, as specified in the Regulations.

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Article 4

  • Companies listed on the Saudi Stock Exchange which are incorporated in accordance with the provisions of the Companies Law as well as licensed investment funds and special purpose entities shall own real estate and acquire other rights in rem over real estate in the Kingdom, including the cities of Makkah and Madinah, in accordance with the provisions of the Capital Market Law and its Implementing Regulations as well as the controls set by the Capital Market Authority in coordination with the Real Estate General Authority and other relevant agencies.

Article 5

  • The application of this Law shall not prejudice the provisions of the Privileged Residency Permit Law or the Statute of Real Estate Ownership by Gulf Cooperation Council (GCC) Nationals within Member States for Residential and Investment Purposes or other applicable laws that grant non-Saudis better rights with regards to the ownership of real estate and the acquisition of other rights in rem thereover.

Article 6

  • The ownership of real estate or the acquisition of other rights in rem over real estate in the Kingdom by non-Saudis shall not entail any rights or privileges other than the rights prescribed by law for the owner of a right in rem.

Article 7

  • Diplomatic missions accredited in the Kingdom may, on the basis of reciprocity, own their official headquarters and the residence of the mission head and members, and international and regional organizations may, within the limits of relevant agreements, own their official headquarters, subject to the approval of the Ministry of Foreign Affairs.

Article 8

  • 1. A non-Saudi company, non-Saudi non-profit entity, or non-Saudi entity determined by a Council of Ministers resolution, referred to in paragraphs (2), (3), and (4) of the definition of a Non-Saudi, must register with the relevant agency prior to owning real estate or acquiring other rights in rem over real estate in the Kingdom, as specified in the Regulations.

  • 2. The ownership of real estate or the acquisition of other rights in rem over real estate in the Kingdom by a non-Saudi shall be deemed valid upon its registration with the Real Estate Registry in accordance with the relevant governing provisions.

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Article 9

  • Without prejudice to any fees or taxes prescribed by law, a fee to be collected by the Authority shall be imposed on the disposition of rights in rem over real estate in the Kingdom by a non-Saudi; such fee shall not exceed 5% of the value of the disposition.

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