own or lease private residences for housing employees of a licensed project; or
●
own or lease real estate for residential use by its employees who enjoy normal legal residency status.
●
With respect to foreign real estate developers in particular, it should be noted that where a foreign
company’s licensed activity includes purchasing buildings or lands for development and investment (by
means of selling or leasing), then the total investment amount must not be less than thirty million Saudi
Riyals (approximately US$ 8 million) (this amount may be amended by the Council of Ministers).
Furthermore, the development of the real estate must be completed within five years from its acquisition,
unless the Ministry of Investment approves an extended timeframe for completion.
The above does not apply to real estate located within the city limits of Mecca and Medina, which is
separately dealt with below, nor to areas specifically excluded from ownership by foreign companies by
royal decree.
Ownership and lease of real estate located within the
city limits of Mecca and Medina
Generally speaking, non-Saudi nationals or entities, are not allowed to own or lease real estate located
within the city limits of Mecca and Medina (save as mentioned below):
Pursuant to a recent amendment to the Law of Real Estate Ownership and Investment by Non-Saudis (by
Royal Decree No. (M/94), dated 15-9-1439 AH) Non-Saudi entities (whether GCC or otherwise) may own or
lease real estate in the vicinity of Mecca and Medina, provided that they fall under the following
exemptions:
banks and real estate financing companies licensed by the Saudi Arabian Monetary Authority (‘SAMA’),
●
provided that their acquisition of real estate is for the purpose of financing Saudi nationals, for their
offices or branches, or for the practice of their activities in accordance with the regulations set out by
SAMA;
listed companies not engaged in real estate activities, provided that the entirety of the real estate is
●
designated for their offices or branches, or the practice of their activities in accordance with the rules set
out by the Capital Market Authority (‘CMA’); or
other entities specified by the Council of Ministers.
●
Pursuant to article 2 of the Regulations for Premium Residency, Non-Saudi nationals with premium
residency status may acquire a usufruct right over real estate in the vicinity of Mecca and Medina for a
period not exceeding 99 years.
Foreign missions
Foreign diplomatic missions in Saudi Arabia may, on a reciprocal basis, own the property where the official
premises and chancery and the mission members’ residences are located. In cases other than the above,
the Chairman of the Council of Ministers may grant approval for real estate ownership for private
residential purpose.