A legal look at the Executive Regulations that complete Saudi Arabia’s new foreign property ownership framework.

When Saudi Arabia enacted the Law of Real Estate Ownership by Non-Saudis, it laid the legal foundation for foreign ownership in the Kingdom. However, many practical questions remained unanswered. Who is eligible to own property? What procedures must investors follow? What compliance obligations apply after the acquisition?

With the publication of the Executive Regulations in the Official Gazette (Umm Al-Qura) on 3 July 2026, the legal framework is now complete. Rather than creating new ownership rights, the Regulations explain how foreign ownership will operate in practice by introducing detailed eligibility requirements, application procedures, compliance obligations, and enforcement mechanisms.

Here are the key legal developments

1. Foreign Investors Must Meet New Eligibility Requirements Before Acquiring Property

One of the most significant changes introduced by the Executive Regulations is that eligibility now begins before the purchase. Under Article 2, a non-resident foreign individual must obtain a Saudi digital identity, open a bank account in the Kingdom, and register a Saudi mobile number linked to that identity before acquiring property or any other real right over real estate. For foreign companies, the requirements go even further. Article 3 requires registration with the Ministry of Investment, disclosure of both direct and indirect owners, and the appointment of a legally recognised representative. Companies must also notify the Ministry within 15 days of certain ownership or control changes. Similar disclosure obligations apply to foreign non-profit entities under Article 4 and other foreign legal persons under Article 5. These provisions demonstrate a clear emphasis on transparency and regulatory oversight from the outset of the investment process.

‍2. The Acquisition Process Is Now Digital

The Executive Regulations place digitalisation at the center of the ownership process. Under Article 6, the Real Estate General Authority (REGA) is required to establish an electronic portal through which applications for ownership, acquisition of other real rights, and related transactions will be submitted. The same Article also requires all financial transactions relating to foreign ownership to be conducted electronically, with ownership ultimately recorded in the Real Estate Registry. This reflects the Kingdom’s broader digital transformation strategy, making the acquisition process more efficient while maintaining regulatory oversight.

3. The Regulations Introduce a New Fee Framework

For the first time, the Executive Regulations provide detailed rules governing fees applicable to certain real estate transactions involving non-Saudis. Under Article 9, a 2% fee applies to certain transfers of real rights over property in Riyadh, Jeddah, Makkah, and Madinah. However, Article 10 also provides a number of exemptions, including transfers by inheritance, court judgments, expropriation for public benefit, certain corporate restructurings, and other specified cases. Accordingly, legal due diligence should now include not only reviewing ownership restrictions but also assessing whether a transaction qualifies for one of the statutory exemptions.

4. Compliance Doesn’t End Once the Property Is Acquired

The Executive Regulations make it clear that compliance is an ongoing obligation.
Foreign companies and other eligible entities are required to keep their registration information up to date and report material changes within the prescribed time limits. Failure to comply with these obligations may expose investors to regulatory action. This marks a shift from regulating the acquisition itself to regulating the entire lifecycle of foreign ownership.

5. Stronger Enforcement and Significant Penalties

Perhaps the clearest message delivered by the Executive Regulations is that foreign ownership will be subject to active regulatory oversight. Articles 11 to 13 establish the inspection, enforcement, and notification framework, while the attached Schedule classifies violations and their corresponding penalties. Among the most serious violations is intentionally providing false or misleading information to obtain ownership. In such cases, the Regulations allow for a fine of up to SAR 10 million, in addition to requiring the disposal of the relevant real property right. The Regulations therefore combine broader investment opportunities with robust compliance and enforcement mechanisms.

What’s Next? A Procedural Guide Is Still Expected

While the Executive Regulations establish the legal framework, Article 14 provides that REGA will issue a Procedural Guide to support their implementation. The Guide is expected to explain the practical aspects of the new framework, including application procedures, required documentation, electronic services, and operational requirements for different categories of applicants. Although it will not create new legal obligations, it is likely to become an important practical reference for investors, lawyers, and businesses navigating the new foreign ownership regime.

At a Glance

The Executive Regulations do not simply expand foreign ownership; they define the legal framework through which those rights will be exercised. By introducing clear eligibility requirements, digital procedures, enhanced transparency obligations, detailed fee provisions, and stronger enforcement mechanisms, the Regulations transform the Law of Real Estate Ownership by Non-Saudis into a practical and operational legal framework. For investors, this means greater certainty. For legal practitioners, it reinforces the importance of due diligence, regulatory compliance, and ongoing monitoring throughout the investment lifecycle.

Qanoniah Insight

The real significance of the Executive Regulations lies not in opening the market to foreign ownership, but in introducing a structured compliance framework. Foreign investors must now focus not only on whether they are eligible to acquire property, but also on meeting the continuing legal obligations that accompany ownership.

With the anticipated publication of REGA’s Procedural Guide, the practical application of the new framework is expected to become even clearer, making it an essential reference for anyone advising on or investing in Saudi real estate.