The Saudi Ministry of Investment has officially permitted foreign investors to own and sell real estate in the Kingdom, provided they meet specific criteria, according to a report by the Saudi Gazette.

One of the primary conditions is that the property must be situated outside the boundaries of the holy cities of Makkah and Madinah. Additionally, the real estate cannot be acquired or traded for the purpose of commercial speculation—defined as buying and selling assets with the intent of profiting from price changes.

Foreign investor firms may purchase properties for various purposes such as personal residences, company headquarters, industrial facilities, staff accommodations, or warehouses—but they must first secure approval from the Ministry of Investment.

Applicants must submit several documents, including a copy of the building permit issued by the municipality, an official letter of approval or a statement outlining the intended land use, and a copy of the property deed.

For real estate development firms planning to implement or market projects, additional requirements apply. They must provide a detailed cost report from an engineering office accredited by the Saudi Council of Engineers. The total cost of land and construction must be at least SR30 million, and the project must be located outside of Makkah and Madinah. Furthermore, developers must utilize the land within a five-year period.

These new regulations mark a significant step in opening Saudi Arabia’s real estate sector to global investors, while ensuring developments align with the Kingdom’s strategic planning goals.