The Ministry of Investment has announced that foreign investors are now allowed to own and sell real estate in Saudi Arabia for investment purposes.
However, the ministry outlined specific conditions for foreign investors seeking permission to engage in such activities, according to a report by the Saudi Gazette.
Saudi Arabia opens real estate market to foreign investors with new regulations
One of the key conditions is that the property must be located outside the boundaries of the holy cities of Makkah and Madinah.
Additionally, the real estate must not be purchased or sold for commercial speculation. Speculation refers to the practice of buying and selling assets such as real estate, stocks, or commodities with the expectation of profiting from price fluctuations.
According to the ministry’s recent report, foreign investor firms seeking to acquire real estate for personal residences, industrial facility headquarters, company administrative headquarters, residential facilities for employees, or warehouses must obtain the ministry’s approval.
“The ministry indicated that there is no financial fee for this service, and that the service is provided by the ministry to beneficiaries through the ministry’s e-services portal within five business days,” the report said.
For investors to submit applications, the ministry has outlined the necessary documents. These include a copy of the municipality’s building permit, a letter of approval from the municipality, or a statement issued by an official authority specifying the intended use of the land. Additionally, a copy of the deed to be acquired is required.
Real estate development firms aiming to implement or sell real estate projects must also comply with the regulations.
They are required to submit a report from an engineering office accredited by the Saudi Council of Engineers detailing the total project cost.
The cost of land and construction must be no less than SR30 million, and the project must be located outside Makkah and Madinah. Moreover, the development must commit to utilising the land within five years.
