Saudi Arabia has approved a policy enabling non-resident foreigners to purchase property using digital identification, marking a significant shift in the Kingdom’s real estate framework. The Cabinet decision supports the forthcoming Non-Saudi Real Estate Ownership Law, which was ratified in July and will take effect on January 21, 2026.
Implementation and Oversight
The General Real Estate Authority (REGA) will coordinate with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), and the National Information Center to implement the digital ID system. Non-resident foreigners will be required to complete several steps before purchasing property: obtain and activate a digital ID through the Absher platform, open a Saudi bank account, and register a local contact number.
To manage these changes, a specialized oversight committee has been formed within REGA’s board, including representatives from government ministries and three members from the private sector. The committee will govern non-Saudi property ownership and usufruct rights, as well as ensure compliance with regulations.
Ownership Scope and Restrictions
The new law permits property ownership by individuals and foreign entities within designated zones approved by the Council of Ministers. Ownership remains restricted in the holy cities of Makkah and Madinah, where only Muslim foreigners may purchase property under specific conditions. The law replaces the Kingdom’s previous 2000 framework on foreign real estate ownership, modernizing the regulatory environment to encourage investment.
Draft implementing regulations are currently under public consultation until 28 August 2025. These regulations set out eligibility criteria, ownership zones, and compliance procedures. They also establish a fee and penalty structure: non-compliance can trigger disposal fees of up to five percent, fines reaching SAR 10 million, and even forced sales of properties if violations occur.
Vision 2030 and Economic Transformation
Officials have framed the digital ID requirement as a way to streamline transactions while ensuring the integrity of ownership records. The reform is designed to reduce administrative barriers, support foreign investment, and align with Saudi Arabia’s Vision 2030 plan to diversify the economy and enhance transparency in the real estate sector.
The Non-Saudi Real Estate Ownership Law will also extend to companies and non-profit organizations, allowing them to acquire property in designated areas subject to regulatory approval. Detailed implementation guidelines and eligibility requirements are expected to be finalized in the months leading up to the law’s enforcement in early 2026.
Sources: Cairoscene, Scenenow, English AAJ
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By the ID Tech Editorial Team
