Foreign investors permitted to participate in real estate activities outside Makkah and Madinah

RIYADH April 4, 2025 — The Ministry of Investment announced that foreign investors are permitted to own and sell real estate for investment purposes, subject to certain conditions. Among the key requirements are that the property must be outside the boundaries of the holy cities of Makkah and Madinah, and the intent behind the sale must not be commercial speculation, which involves buying and selling assets like real estate in hopes of profiting from price changes.

A recent report from the ministry stated that foreign investor firms must obtain approval from the ministry to own real estate for uses such as personal residences, industrial facility headquarters, company administrative offices, residential accommodations for employees, and warehouses.

The ministry clarified that there are no fees for this service, which is available through the ministry’s e-services portal and processed within five business days.

Regarding necessary documents, the ministry emphasized that applicants must submit a copy of the municipality’s building permit or a letter of approval from the municipality, a statement from an official authority indicating the intended use of the land, and a copy of the deed to be acquired.

Real estate development companies wishing to implement or sell a real estate project must provide a report from an engineering office accredited by the Saudi Council of Engineers, detailing the total project cost, along with a copy of the deed for the land or property involved. The cost must be at least SR30 million for land and construction, and the project must be located outside the boundaries of Makkah and Madinah. Additionally, the establishment must commit to utilizing the land within five years.