Riyadh – The Ministry of Investment of Saudi Arabia has officially announced that foreign investors can now own and sell real estate within the Kingdom for investment purposes, a move aimed at stimulating growth in the local property market.
As reported by the Arabic daily Okaz, the ministry has outlined specific guidelines for foreign investors interested in acquiring real estate. These regulations include location restrictions and clear definitions of permitted investment activities.
Key Restrictions for Foreign Investors
Foreign investors are required to adhere to the following conditions:
- Location Limits: Properties must be located outside the holy cities of Makkah and Madinah. These areas remain restricted to preserve their sanctity.
- Investment Intentions: Properties cannot be acquired for commercial speculation, which refers to purchasing assets such as real estate, stocks, or commodities with the intent to profit from short-term price fluctuations. This move aims to discourage high-risk speculative activities and encourage long-term investments.
Approval Process and Required Documentation
Foreign investment firms wishing to own real estate for purposes such as personal residences, industrial facilities, corporate offices, employee housing, or warehouses must seek approval from the ministry. This approval process is free of charge and can be completed through the ministry’s e-services portal, with a decision typically made within five business days.
Required documents for approval include:
A copy of the municipality’s building permit or an official approval letter from the municipality.
A statement from an authorized authority indicating the intended use of the land.
A copy of the property deed for the land in question.
Real Estate Development Projects
For foreign real estate development companies planning to execute or sell a project, additional requirements apply. These developers must submit a report from an engineering office accredited by the Saudi Council of Engineers. The report should detail the total project cost, which must exceed 30 million Saudi Riyals for both land and construction. Furthermore, the development project must be located outside Makkah and Madinah and be utilized within five years of its completion.
A Strategic Move for Regional Growth
This initiative is part of Saudi Arabia’s broader strategy to stimulate investment and real estate development in regions outside the holy cities. By easing access to the property market for foreign investors, the Kingdom aims to diversify its economy and further integrate itself into the global real estate market while adhering to its cultural and religious values.
The new regulations reflect the Kingdom’s ongoing efforts to create an attractive investment environment, with an emphasis on long-term, sustainable development.
