During its session held on Tuesday, July 8, 2025, in Jeddah, the Saudi Council of Ministers, chaired by Crown Prince Mohammed bin Salman, approved a new system that allows non-Saudis to own real estate.

The Saudi Crown Prince, Prince Mohammed bin Salman, also briefed the Council of Ministers on the outcomes of his official discussions with Indonesian President Prabowo Subianto, and on the content of the phone call he received from German Chancellor Friedrich Merz. The discussions covered aspects of bilateral cooperation, including investment opportunities in Saudi real estate and strengthening economic partnerships.

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The Minister of Municipal and Rural Affairs and Housing, and Chairman of the Board of Directors of the General Real Estate Authority, Majid Al-Hogail, stated that the Council of Ministers' approval of the system at this time represents an extension of real estate legislations aimed at developing the Saudi real estate sector and enhancing its attractiveness for foreign direct investment.

He added that the new real estate ownership system considers the interests of Saudi citizens through clear mechanisms to regulate the market and ensure adherence to organized procedures, thereby contributing to balance and stability in the real estate sector. He pointed out that the system has taken into account all economic and investment aspects, as it will allow non-Saudis to own real estate within specific geographical areas, particularly in the cities of Riyadh and Jeddah, with special conditions imposed for ownership in Mecca and Medina. According to the new system, the General Real Estate Authority is responsible for proposing the geographical areas where non-Saudis are permitted to own real estate or acquire other in rem rights over it.

The General Real Estate Authority announced that it would publish the executive regulations of the system on the platform within 180 days from the date of its publication in the Official Gazette, with its entry into force scheduled for January 2026, as specified by the system. The regulations will include details of the procedures for non-Saudis to own real estate and the requirements for implementing the system's provisions on them, in addition to the mechanisms for its application, taking into account various economic and social dimensions. According to the Saudi Press Agency (SPA), this system aligns with the provisions of the Premium Residency System and the regulation of real estate ownership for citizens of Gulf Cooperation Council countries for residential or investment purposes, in addition to other applicable regulations that grant non-Saudis privileges of real estate ownership and associated in rem rights.

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