Conditions for foreign companies to own real estate in Saudi Arabia | Ministry of Investment
In a significant regulatory step aimed at enhancing the Kingdom's investment appeal, the Saudi Ministry of Investment has revealed the requirements and procedures necessary to facilitate foreign companies' ownership of real estate within its borders, even if those companies are not resident or directly engaged in economic activity. This clarification is included in the updated Investor Guide for 2026, reflecting the Kingdom's commitment to providing a clear and transparent legal framework for investors worldwide.
These updates come within the context of the major economic transformations underway in Saudi Arabia as part of Vision 2030, which aims to diversify national income sources and reduce dependence on oil. Opening the real estate sector to foreign companies is a key pillar for attracting foreign direct investment and stimulating growth in non-oil sectors. Historically, there have been regulatory restrictions on foreign ownership of real estate, but recent reforms aim to align local regulations with global best practices, making the Saudi market more competitive both regionally and internationally.
A strategic step to support major projects
Facilitating property ownership for international companies not only serves the goals of economic diversification but also plays a pivotal role in supporting the Kingdom's mega-development projects, such as NEOM, the Red Sea Project, and Qiddiya. These projects require massive investments and advanced infrastructure, and the entry of foreign companies as property owners contributes to providing additional liquidity to the market and transferring global expertise in real estate development and asset management, thus enhancing project quality and accelerating their completion.
Details of foreign companies' property ownership requirements
The Ministry of Investment clarified that completing the registration process requires the non-resident foreign company to submit a set of official documents, which must be duly certified to ensure their validity and legality. These requirements primarily include the following:
- Company Commercial Register: A copy of the company's commercial register in its home country must be submitted, along with a certified translation into Arabic and attestation from the Saudi embassy in that country.
- Company Incorporation Memorandum: The company's memorandum and articles of association must also be submitted, translated and certified in the same manner.
- Official authorization: The company must issue an official authorization to appoint an authorized representative (natural person) who will undertake all necessary procedures before the Ministry of Investment and other government agencies in the Kingdom.
- Digital ID: If the authorized representative does not have a valid ID according to Saudi regulations, the procedures for issuing a digital ID must be completed through the Kingdom’s diplomatic missions abroad.
The ministry also stressed the need to update data annually, stipulating that no material changes must occur in the company's ownership or management in its home country after its registration with the ministry. It confirmed that the service is provided instantly through the ministry's online portal, reflecting its commitment to digital transformation and streamlining procedures for investors.
Expected impact on the national economy
This move is expected to have multiple positive effects on the Saudi economy. In the short term, it will increase demand in the real estate market and attract new investments. In the long term, it will contribute to greater market stability and maturity, enhance transparency, and create new job opportunities in the construction and real estate services sectors. This liberalization also aligns with the objectives of the new investment law, which aims to protect investors' rights and facilitate entry and exit procedures, thereby strengthening international investor confidence in the Saudi economy as a safe and profitable investment destination.
