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NRI and Global Investment | June 2026
Saudi Arabia’s Ministry of Investment released the Investor Guide 2026 this week. For the first time, it includes a standalone chapter titled “Registration of Non-Saudi Companies for Property Ownership Purposes.” This is the procedural layer on top of a landmark law, Royal Decree No. M/14, that took effect in January 2026 and rewrote who can own real estate in the Kingdom. If your company has interests in Saudi property, or if you are an Indian business or NRI investor tracking Gulf real estate, this article covers every detail you need.
Table of Contents
- Part I: What Changed and Why It Matters Old 2000 law vs. new 2026 law, Royal Decree M/14, Vision 2030
- Part II: Who Can Now Own Property in Saudi Arabia Six eligible categories, geographic restrictions, Makkah and Madinah rules
- Part III: Rules Specific to Foreign Companies Definition, Investor Guide 2026 requirements, documentation list
- Part IV: The Registration Process Step by Step Portal, digital identity, power of attorney, annual renewal
- Part V: Fees, Penalties, and Compliance 10% total fee structure, SAR 10 million penalty, enforcement
- Part VI: What Types of Property Can Foreign Companies Buy Residential, commercial, industrial, agricultural, usufruct and easement rights
- Part VII: Where Can Foreign Companies Buy Property Geographic scope document, city-wise status, REGA’s role
- Part VIII: What This Means for Indian Businesses and NRIs India-Saudi trade, practical implications, action checklist
- Frequently Asked Questions
Jan 2026
Royal Decree M/14 took effect, 180 days after Official Gazette publication (July 25, 2025)
15
Articles in the new law, fully replacing the 2000 framework
10%
Total fee on non-Saudi property acquisition: 5% disposition tax plus up to 5% additional levy
SAR 10M
Maximum fine for violations, including false information cases
Part IWhat Changed and Why It Matters
The Old Law and Its Limits
Foreign ownership of real estate in Saudi Arabia is not entirely new. The previous framework, the Law of Real Estate Ownership and Investment by Non-Saudis, was enacted by Royal Decree No. M/15 in April 2000. However, it was restrictive by design. It permitted foreign ownership only for licensed investors already operating in the Kingdom, residents with permits, and diplomatic missions. Foreign companies could acquire property primarily for operational use, such as offices, branches, or employee housing. A minimum investment threshold of SAR 30 million applied to development projects. Ownership in Makkah and Madinah was prohibited for all non-Saudis without exception. Non-resident companies with no Saudi economic presence had no legal pathway at all.
That framework remained in place for over two decades.
Royal Decree No. M/14: The New Law
On July 14, 2025, the Council of Ministers of Saudi Arabia issued Royal Decree No. M/14, approving the Law of Real Estate Ownership by Non-Saudis. It was published in the Official Gazette, Umm Al-Qura, on July 25, 2025. The law entered into force 180 days after publication, in January 2026. It repeals the 2000 law entirely and replaces it with a 15-article framework.
The structural difference from the old law is significant. Under the old law, foreign entities needed individual government approvals on a case-by-case basis. Under the new law, ownership is a statutory right within defined geographic zones. You do not need special government permission. You need to meet the registration requirements and stay within the permitted zones.
The new law also extends eligibility to non-resident foreign companies, meaning companies with no branch, no subsidiary, and no economic activity in Saudi Arabia can now own property there. It partially lifts the Makkah and Madinah restriction for specific categories. And it introduces new forms of ownership including usufruct rights and easements, not just outright ownership.
Why Vision 2030 drives this change: Saudi Arabia’s Vision 2030 programme targets a major expansion of non-oil GDP. The Kingdom is building NEOM, the Red Sea tourism project, Diriyah, and multiple other large-scale developments. These require foreign capital at scale. The new property law removes structural barriers that previously kept international investors out of the Saudi real estate market. It is not a standalone regulatory update. It is a deliberate enabler of the investment strategy behind Vision 2030.
| Parameter | Old Law (Royal Decree M/15, 2000) | New Law (Royal Decree M/14, 2026) |
|---|---|---|
| Who can own | Licensed investors, residents with permits, diplomatic missions only | Six categories including non-resident companies and non-profit entities |
| Non-resident company ownership | Not permitted | Permitted in designated geographic zones after Ministry of Investment registration |
| Makkah and Madinah | Prohibited for all non-Saudis without exception | Permitted for Muslim individuals and specific corporate categories under defined conditions |
| Approval basis | Individual government approval, case by case | Statutory right within defined geographic zones |
| Minimum investment threshold | SAR 30 million for development projects | No blanket minimum; zone-specific rules apply |
| Types of rights | Ownership for specified operational purposes | Full ownership right plus in-rem rights such as usufruct and easement |
Part IIWho Can Now Own Property in Saudi Arabia
The new law defines six eligible categories of non-Saudi owners. Each carries different geographic permissions. Understanding which category applies to you determines where you can buy, what restrictions apply, and which regulatory body oversees your ownership.
| Category | Makkah and Madinah Access | Key Restriction |
|---|---|---|
| Non-Saudi individuals residing in Saudi Arabia | Muslim individuals only | One residential property permitted. Excluded from four cities: Makkah, Madinah, Riyadh, and Jeddah, unless property falls within a designated ownership zone inside those cities. |
| Non-Saudi individuals not residing in Saudi Arabia | Not permitted | Only in designated ownership zones approved by the Council of Ministers |
| Non-Saudi companies (headquartered outside the Kingdom, with or without a Saudi branch) | Not directly permitted as a standalone category | Must register with Ministry of Investment before any acquisition. Zone restrictions apply. |
| Saudi companies with non-Saudi shareholders (incorporated under Saudi Companies Law) | Permitted for office and branch use in specific zones | Subject to CMA controls if listed on the Tadawul exchange |
| Listed companies, investment funds, and special purpose entities (CMA-licensed) | Permitted subject to CMA controls | Capital Market Authority Controls (effective January 2026) govern ownership limits |
| Diplomatic missions and international organisations | Subject to reciprocity and Ministry of Foreign Affairs approval | Only for personal residence and official headquarters use |
The Makkah and Madinah position under the new law: Under the old law, all non-Saudis were excluded from the holy cities without exception. The new law partially changes this. Muslim individuals may now own property in Makkah and Madinah. Saudi companies with non-Saudi shareholders may own property there for office and branch purposes within designated zones. Listed companies, investment funds, and special purpose entities licensed by the Capital Market Authority may also own property in the holy cities subject to CMA Controls. Non-resident foreign companies as a standalone category do not have direct access to Makkah and Madinah. A non-Saudi company that wants access to these cities would need to incorporate a subsidiary under Saudi Companies Law.
Part IIIRules Specific to Foreign Companies
Who Qualifies as a “Non-Saudi Company”
The Real Estate General Authority (REGA) defines a non-Saudi company precisely in its official Q&A document. It is any company not established under the Saudi Companies Law whose headquarters are outside the Kingdom. This covers three situations: companies with no Saudi branch at all, companies that have a Saudi branch, and companies with only a representative office in Saudi Arabia. All three fall under the non-Saudi company category and face the same registration requirements.
What the Investor Guide 2026 Introduced
The Ministry of Investment’s Investor Guide 2026 added a standalone chapter for the first time: “Registration of Non-Saudi Companies for Property Ownership Purposes.” The Ministry itself described this as one of the most significant additions to the 2026 edition. Foreign company property ownership had not been addressed with this level of procedural detail in any prior version of the guide.
The chapter targets a specific type of applicant: a non-resident foreign company that wants to own Saudi property without establishing economic activities in the Kingdom. A company that wants to buy Saudi real estate as an investment or future operational base, without setting up a branch or local business first, now has a documented legal pathway. That pathway did not exist in written form before this guide.
Documents Required
The Ministry of Investment has specified the exact documents a foreign company must submit. Every document requires both translation into Arabic and authentication by the Saudi Embassy in the company’s home country. There are no exceptions to either requirement.
| Document | Arabic Translation | Saudi Embassy Authentication |
|---|---|---|
| Commercial registration certificate from home country | Required, by accredited office | Required |
| Articles of incorporation of the company | Required, by accredited office | Required |
| Authorisation document appointing a company representative | Required, by accredited office | Required |
| Certified power of attorney for the natural person representative | Required | Required, notarised and certified |
| Digital identity (if company has no Saudi-recognised ID document) | Not applicable | Obtained through Saudi diplomatic mission abroad |
The representative requirement is non-negotiable: The law requires every non-resident foreign company to appoint a natural person, an individual, not a legal entity, as its authorised representative in Saudi Arabia. This appointment must be formalised through a certified power of attorney. The company cannot complete registration or proceed with any property transaction without this step. The Ministry of Investment holds the representative accountable for ensuring the company’s compliance with all registration and reporting obligations going forward.
Practical Example
An Indian engineering company based in Pune wants to purchase an office unit in Riyadh as part of a planned Saudi expansion. It does not yet have a registered Saudi branch. Under the old 2000 law, this was not permitted without establishing economic activity first.
Under the new framework, the company can proceed as a non-resident foreign company. It must get its certificate of incorporation from the Ministry of Corporate Affairs in India, have it translated by an accredited Arabic translation agency, and get it attested at the Royal Saudi Consulate. The same process applies to its Memorandum and Articles of Association. It must then appoint an individual as its authorised representative in Saudi Arabia through a notarised and Saudi-attested power of attorney. Once these documents are submitted through the Ministry of Investment’s electronic portal, the company can register and proceed toward property acquisition in designated zones in Riyadh.
Part IVThe Registration Process Step by Step
The Ministry of Investment has made the registration service available through its electronic portal. You do not need to be physically present in Saudi Arabia to begin. However, the document authentication steps require engagement with Saudi diplomatic missions in your home country.
Prepare your commercial registration certificate
Obtain a valid, current commercial registration certificate from the company registry in your home country. It must reflect the correct company name, address, and shareholder structure.
Prepare your articles of incorporation
Compile the company’s articles of incorporation or memorandum and articles of association. These must reflect the current ownership structure accurately.
Translate both documents into Arabic
Both the commercial registration certificate and articles of incorporation must be translated by an accredited Arabic translation office. A standard translation is not sufficient. The translation office must be accredited and must certify the translation.
Authenticate at the Saudi Embassy in your home country
Both translated documents must be authenticated by the Royal Saudi Embassy or Consulate in your home country. This step is mandatory. Documents without Saudi Embassy attestation will not be accepted by the Ministry of Investment.
Appoint a natural person representative in Saudi Arabia
Identify an individual who will act as the company’s authorised representative. Issue a power of attorney document naming this person. The power of attorney must also be translated into Arabic and authenticated at the Saudi Embassy.
Obtain a digital identity if required
If the company does not hold an identification document recognised under Saudi regulations, it must obtain a digital identity through Saudi diplomatic missions abroad before the registration can proceed.
Submit through the Ministry of Investment electronic portal
Submit all authenticated documents via the Ministry of Investment’s online portal at misa.gov.sa. The service is live. The Ministry will verify documents through official channels before approving registration.
Complete annual renewal each year
Registration is not a one-time event. Companies must confirm annually that no material changes have occurred to their ownership structure or management since registration. Failure to disclose such changes can result in a fine of up to SAR 1 million.
Part VFees, Penalties, and Compliance
The 10% Fee Structure
The new law imposes a total real estate fee of 10% on non-Saudi property ownership. This is composed of two parts. The first is a 5% real estate disposition tax that applies to all property transactions in Saudi Arabia. The second is an additional levy of up to 5% specifically for non-Saudi buyers. Together, the combined maximum is 10%. This fee applies at the point of acquisition or transfer, not as an annual holding charge.
| Fee Component | Rate | Applicable To |
|---|---|---|
| Real estate disposition tax | 5% | All property transactions in Saudi Arabia |
| Additional non-Saudi ownership levy | Up to 5% | Non-Saudi buyers specifically |
| Combined maximum fee | 10% | Non-Saudi foreign companies at point of acquisition |
Penalties for Non-Compliance
The law establishes specialised committees within REGA to review violations and administer penalties. The enforcement framework is structured and defined, not discretionary.
| Violation | Penalty |
|---|---|
| General violations (first level) | Warning, escalating to a fine up to 5% of property value, capped at SAR 10,000,000 |
| Providing false or misleading ownership information | Fine up to SAR 10,000,000 and mandatory public auction of the property |
| Failure to disclose changes in ownership or management at annual renewal | Fine up to SAR 1,000,000 |
| Violations by partly foreign-owned companies | Fine between 0.5% and 1% of violation value, capped at SAR 2,000,000 |
| Obstructing inspection or oversight procedures | Warning or fine up to SAR 500,000 |
The public auction penalty is the most severe mechanism: If REGA finds that a company acquired property through false information, the property can be auctioned publicly regardless of the company’s position. Proceeds go to the Saudi state after deducting transaction costs. The company loses the asset entirely. This is not a theoretical risk. It is a clearly stated provision of the law, and the Ministry of Investment has confirmed it will verify all submitted documents through official channels before approving registration.
Part VIWhat Types of Property Can Foreign Companies Buy
The new law does not limit foreign companies to any single category of property. This is an important point that distinguishes the 2026 framework from the old 2000 law, which restricted foreign companies to operational properties only. Under the new law, eligible non-Saudis and foreign companies can acquire the following types of property within approved geographic zones.
| Property Type | Eligible for Foreign Companies | Geographic Access |
|---|---|---|
| Residential apartments, villas, and townhouses | Yes | Within designated zones only. Four cities excluded for residential: Makkah, Madinah, Riyadh, and Jeddah (unless within an approved zone inside those cities). |
| Commercial offices, retail spaces, and mixed-use developments | Yes | Open in all cities without exception, including Riyadh and Jeddah, subject to zone designations |
| Industrial properties, warehouses, and logistics facilities | Yes | Open in all cities without exception, subject to sector-specific licensing requirements |
| Agricultural land | Yes | Subject to additional regulatory requirements and zone designations |
| Off-plan units in mega-projects (NEOM, Red Sea, Diriyah, Qiddiya) | Yes | Subject to project-specific regulations. These zones operate under special frameworks. |
The critical distinction is between residential and non-residential property. Residential ownership by non-Saudi individuals is subject to tighter geographic controls, including the exclusion of four cities. Non-residential ownership, specifically commercial, industrial, and agricultural properties, is open in all cities of the Kingdom without the same restrictions. This means an Indian company wanting to buy a warehouse in Riyadh or an office in Jeddah faces fewer geographic barriers than an individual wanting to buy a flat in those same cities.
Types of Rights Available, Not Just Outright Ownership
Foreign companies are not limited to buying property outright. The law recognises a full spectrum of real estate rights that non-Saudis can acquire. These include full freehold ownership, long-term leaseholds, usufruct rights, and easements.
A usufruct right means the right to use a property and benefit from it, including collecting rental income, without owning the underlying land. This structure is common in markets where land ownership is restricted but where investors still want economic exposure to real estate. The Geographic Scope Document will specify the maximum permitted duration for usufruct rights in each zone. An easement is a right to access or use a portion of another person’s property for a specific purpose, such as a right of way or utility access. These rights are transferable and can be registered formally, giving investors legal certainty without requiring outright title.
Practical implication for Indian companies: A company that is not yet ready to commit to full ownership of Saudi commercial property can enter through a usufruct arrangement. This gives it the right to use and derive income from the property for a fixed period without acquiring the land title. Once operations are established and commitment is confirmed, it can then move toward full ownership in a subsequent transaction within the permitted zones.
Part VIIWhere Can Foreign Companies Buy Property
The new law uses a zone-based system. The Council of Ministers publishes a Geographic Scope Document specifying exactly which areas, cities, and zones are open to non-Saudi ownership. This document includes maps, permitted ownership limits, types of real estate rights, allowed durations for usufruct rights, and other zone-specific controls.
As of June 2026, REGA has confirmed that ownership zones will cover cities including Riyadh, Jeddah, and other regions. The full Geographic Scope Document with granular zone maps remains pending final publication by the Council of Ministers. REGA has directed investors to its official channels at @REGA_KSA for updates.
The residential versus commercial distinction is critical here: For residential property, four cities are excluded for individual foreign ownership: Makkah, Madinah, Riyadh, and Jeddah. However, for commercial, industrial, and agricultural properties, no such exclusion applies. The Saudi Minister of Municipalities and Housing, Majed Al-Hogail, confirmed this publicly: commercial and non-residential ownership is open in all cities of the Kingdom without exception. A foreign company buying an office, warehouse, or industrial unit in Riyadh or Jeddah does not face the same restrictions that apply to a foreign individual buying a flat in those cities.
| City | Residential: Foreign Individuals | Commercial / Industrial: Foreign Companies |
|---|---|---|
| Riyadh | Excluded (unless in a designated zone) | Open in all areas, no exclusion |
| Jeddah | Excluded (unless in a designated zone) | Open in all areas, no exclusion |
| Makkah | Excluded. Muslim individuals only in designated zones. | Non-resident foreign companies not directly permitted. Saudi-registered subsidiaries with non-Saudi shareholders may access. |
| Madinah | Excluded. Muslim individuals only in designated zones. | Same as Makkah |
| All other cities and governorates | Permitted, within designated zones | Open without exception |
Part VIIIWhat This Means for Indian Businesses and NRIs
The India-Saudi Economic Relationship
Saudi Arabia and India share a deep economic relationship. Bilateral trade in FY 2024-25 stood at USD 41.88 billion, with Indian exports at USD 11.76 billion and Saudi imports at USD 30.12 billion. Saudi Arabia is India’s fifth-largest trading partner. India is the Kingdom’s second-largest trading partner. The Indian expatriate community in Saudi Arabia numbers approximately 1.5 million people based on the 2023 Saudi census, making it one of the largest foreign communities in the Kingdom.
Against this backdrop, the new property law opens a door that was previously closed to most Indian businesses. An Indian company with commercial interests in Saudi Arabia, even without a registered Saudi branch, can now pursue property ownership directly as a non-resident foreign company, subject to the Investor Guide 2026 requirements.
Practical Implications for Indian Companies
The immediate benefit goes to Indian companies actively expanding into Saudi Arabia in sectors such as information technology, pharmaceuticals, engineering, food processing, and construction. Many maintain relationships with Saudi entities but have not yet formalised a Saudi legal presence. The new law lets them acquire commercial property in designated zones without establishing a Saudi branch first.
For NRI investors who reside in Saudi Arabia, the law permits ownership of one residential unit in most Saudi cities. The four excluded cities for residential ownership are Makkah, Madinah, Riyadh, and Jeddah, unless a specific designated zone within those cities is later approved by the Council of Ministers. A Muslim Indian national residing in the Kingdom can also own property in Makkah and Madinah subject to implementing regulations.
What Indian Companies Should Do Now
- Verify your commercial registration status in India. The Ministry of Investment will scrutinise the certificate carefully. Ensure it is current and reflects the correct ownership structure.
- Appoint a Saudi-based individual as your representative. This is a legal requirement. The representative must be a natural person capable of acting under a certified power of attorney in Saudi Arabia. This step cannot be skipped.
- Engage an accredited Arabic translation agency. Standard translations are not accepted. The agency must be accredited and must certify the translation formally.
- Contact the Royal Saudi Consulate in India for document authentication. Saudi Consulate General offices operate in Mumbai, New Delhi, Kolkata, Chennai, and Hyderabad. Contact the relevant office for current authentication timelines, as these vary.
- Monitor the REGA Geographic Scope Document. Until the full zone maps are published, exact locations available for foreign company ownership remain unconfirmed at the granular level. Follow REGA’s official channels at @REGA_KSA or visit rega.gov.sa.
- Budget for the 10% acquisition fee from day one. The combined real estate disposition tax (5%) and the additional non-Saudi levy (up to 5%) apply at the point of purchase. This is a material cost and must be included in investment modelling from the start.
Frequently Asked Questions
Yes. Under Royal Decree No. M/14, effective January 2026, non-resident foreign companies including those with no branch, no subsidiary, and no economic activity in Saudi Arabia can register with the Ministry of Investment and acquire property in designated zones. This was not possible under the 2000 law, which required a licensed operational presence first. The Investor Guide 2026 contains the exact documentation requirements for this category.
The law imposes a total fee of 10% on non-Saudi property acquisition. This comprises a standard 5% real estate disposition tax applying to all Saudi property transactions, plus an additional levy of up to 5% specifically for non-Saudi buyers. Both are one-time transaction fees at the point of acquisition, not annual charges. The exact rate within the 5% additional levy ceiling will be specified in implementing regulations issued by the Council of Ministers. Source: REGA’s official Q&A document on the law.
Not directly as a non-resident foreign company. The holy cities remain restricted for this category. Ownership in Makkah and Madinah is permitted for Muslim individuals, Saudi companies with non-Saudi shareholders for office and branch use in specific zones, and listed companies, investment funds, and special purpose entities licensed by the Capital Market Authority under CMA Controls issued in January 2026. A non-Saudi company wanting access to the holy cities would need to incorporate a Saudi subsidiary under Saudi Companies Law, placing it in the “Saudi company with non-Saudi shareholders” category.
The law prescribes two simultaneous consequences. First, REGA can impose a financial fine of up to SAR 10,000,000. Second, the property itself is sold at public auction regardless of the company’s position. The auction proceeds go to the Saudi state after deducting transaction costs. The company loses the asset entirely. The Ministry of Investment has confirmed it will verify all submitted documents through official channels before approving any registration. Source: REGA official Q&A document, Fees and Market Oversight section.
Yes. The Investor Guide 2026 requires annual registration renewals. At each renewal, companies must confirm that no material changes have occurred to their ownership structure or management since their initial registration. If changes have occurred, they must be disclosed at the time of renewal. Failure to disclose can result in a fine of up to SAR 1,000,000. This is a significant operational consideration for companies that may undergo restructuring or shareholder changes in their home countries.
The Geographic Scope Document specifying exact zones and cities is published by the Council of Ministers. As of June 2026, the granular zone maps for all cities are still pending full publication. REGA has confirmed that ownership zones will cover areas in Riyadh, Jeddah, Makkah, Madinah, and other regions. For updates, follow REGA’s official accounts at @REGA_KSA or visit rega.gov.sa. For registration procedures and the Investor Guide 2026, visit the Ministry of Investment electronic portal at misa.gov.sa.
A Law 25 Years in the Making
Saudi Arabia had one of the most restrictive foreign real estate ownership regimes in the Gulf for over two decades. The 2000 law allowed foreign ownership in theory but only within such narrow parameters that most international companies had no viable pathway. A non-resident company wanting to own Saudi property simply had no route. That changed in January 2026.
The Investor Guide 2026 and its new chapter on foreign company registration are the procedural bridge between Royal Decree M/14’s broad legislative intent and the actual steps a company must take. The Ministry of Investment has been direct: submit the right documents, appoint a representative, register through the portal, and renew every year. The framework is more structured than what existed before, not just more permissive. Compliance is enforced through a penalty structure that goes all the way to compulsory public auction of the asset.
For Indian businesses and NRI investors, this is a genuine and significant opportunity. The documentation requirements are specific. The 10% acquisition fee is material and must be planned for. The geographic scope document, when fully published, will determine whether the precise locations relevant to any given investor are actually available. Until that document is finalised, the right move is to prepare documentation, appoint a representative, and monitor REGA’s official channels. The door is open. The process is deliberate. And the consequences of getting it wrong are real.
Disclaimer: This article is for informational and educational purposes only. The information provided is based on publicly available official sources and is current as of June 8, 2026. Saudi Arabia’s implementing regulations and Geographic Scope Document are still pending full publication by the Council of Ministers. This article will be updated as REGA publishes further details. Laws, implementing regulations, and geographic zone designations may be updated by the Saudi authorities at any time. Nothing in this article constitutes legal, investment, or financial advice. Always consult a qualified legal professional before making real estate investment decisions in Saudi Arabia.
