In a groundbreaking move to attract international investment and enhance its global competitiveness, Saudi Arabia has officially enacted a new law allowing foreigners to own property within the Kingdom. The regulation, recently published in the official gazette Umm Al-Qura, marks a pivotal shift in the country’s real estate framework — one that’s closely aligned with Vision 2030 and the Kingdom’s ambitions to become a global hub for commerce, tourism, and innovation.
The newly approved legislation grants non-Saudis — including individuals, international companies, and non-profit organizations — the right to own real estate or hold other property-related rights, such as usufruct and leaseholds. This is a significant step in Saudi company formation and business establishment in Saudi Arabia, especially for foreign investors looking to register a company in Saudi Arabia or set up regional headquarters.
However, property ownership by non-Saudis will be limited to zones approved by the Cabinet and based on national interests, development plans, and geographic sensitivity. The law also outlines specific exemptions for restricted cities like Makkah and Madinah, where foreign ownership remains generally prohibited except under particular conditions for Muslim individuals.
Saudi Arabia offers a 20% corporate tax rate, far lower than many global competitors. Plus:
This legal update is expected to streamline company formation in Saudi Arabia, particularly for firms involved in real estate investment, tourism development, and urban planning.
The law provides new avenues for setting up your company in Saudi Arabia and directly links property ownership with operational viability. For businesses exploring Saudi company setup or business incorporation in Saudi Arabia, this law offers strategic benefits:
This reform aligns with the goals of business setup companies in Saudi Arabia and company formation consultants aiming to help international clients to start their company in Saudi Arabia with more flexibility and control.
The law will be enforced by the Real Estate General Authority, which will also form a specialized committee to investigate violations. Additionally, all foreign ownership must be pre-approved, and commercial registration in Saudi Arabia will be a prerequisite for property transactions.
Foreign entities will be required to use platforms like Absher Business, Mudad Portal, and Qiwa Saudi Arabia to complete registrations and legal obligations.
With this legal reform, the path to Saudi LLC company formation, setting up a business in Riyadh, or registering a business in Saudi Arabia with residency becomes clearer and more appealing. Entrepreneurs now have:
The executive regulations are expected within six months and will offer more clarity on zoning, eligible regions, and usage rights for foreign-owned properties. In the meantime, if you’re planning to incorporate a company in Saudi Arabia or form an LLC, it is the perfect time to align your real estate and licensing strategies.
At Arabian Business Quest, we specialize in helping international investors set up companies in Saudi Arabia — including business license registration, commercial address solutions, and legal compliance. Our team stays ahead of all policy changes to guide you smoothly through the entire process.
This isn’t just a real estate law — it’s your opportunity to establish a strong business presence in Saudi Arabia. Whether you’re planning to register a company in Riyadh, set up in Jeddah, or expand to Dammam, owning property can now be part of your growth strategy.
Let us support your journey from idea to operation. Get in touch for a free consultation and take the first step in your successful company formation in Saudi Arabia.
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