How to buy land in Saudi Arabia?

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack

Who is the author of this content?

SANDSOFWEALTH

A team specialized in real estate investing in MENA countries (Saudi Arabia, UAE, Qatar, Egypt, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Saudi Arabia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At SandsofWealth, we explore the Saudi real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Riyadh, Jeddah, and Dammam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally buy in Saudi Arabia and are there restrictions by region or use?

Foreigners can legally purchase both residential and commercial land in most parts of Saudi Arabia under freehold ownership since the 2020 investment law reforms.

In major cities including Riyadh, Jeddah, Dammam, and special economic zones like NEOM and the Red Sea Project, foreign buyers enjoy full ownership rights without requiring local partnerships. Commercial land purchases are typically subject to specific investment thresholds and project-based requirements, while residential land faces fewer restrictions.

However, significant regional restrictions apply to sensitive areas. Foreigners cannot own property outright in the holy cities of Mecca and Medina, though they can enter long-term lease agreements of up to 99 years. Border areas, military zones, and critical infrastructure locations remain completely off-limits to foreign ownership or leasing.

Special economic zones offer the most flexible ownership terms, with some allowing 100% foreign ownership under specific investment conditions. These zones are designed to attract international capital and often provide streamlined approval processes for qualified investors.

It's something we develop in our Saudi Arabia property pack.

Can foreigners own land outright in Saudi Arabia or is it leasehold, and is any kind of partnership with a local mandatory?

Foreigners can own land outright through freehold ownership in most permitted areas of Saudi Arabia, eliminating the need for local partnerships in standard residential and commercial transactions.

The ownership structure depends on location and property type. In unrestricted areas, foreign individuals and companies can hold freehold titles identical to Saudi nationals, providing full ownership rights including the ability to sell, lease, or develop the property. For sensitive areas or specific project types, leasehold arrangements of up to 99 years may be the only option available.

Local partnership requirements are rare for individual property purchases but may apply to certain commercial development projects or companies seeking to operate in restricted sectors. Foreign companies investing in large-scale developments might need to meet specific investment thresholds or obtain special licenses, but these requirements vary by project scope and location.

The Premium Residency Program has further simplified ownership for qualified investors, allowing them to purchase property without additional partnership requirements once they meet the minimum investment criteria of SAR 4 million in real estate.

What is the exact step-by-step process for buying land in Saudi Arabia from property search to registration?

The land acquisition process in Saudi Arabia follows a structured eight-step procedure that typically takes 60-90 days from initial search to final registration.

1. **Property Search and Identification**: Use licensed real estate platforms, agents, or developers to identify suitable land parcels. Verify the property's legal status and zoning regulations through initial due diligence.2. **Legal Due Diligence**: Engage a qualified Saudi lawyer to conduct comprehensive title searches, verify ownership history, and confirm the land is free from encumbrances or legal disputes.3. **Negotiation and Preliminary Agreement**: Negotiate terms with the seller and sign a memorandum of understanding or preliminary sales agreement outlining key conditions and timelines.4. **Government Approval Application**: Submit your ownership application to the Ministry of Investment or relevant regional authority, including all required documentation and supporting materials.5. **Approval and Permit Issuance**: Wait for government review and approval, which typically takes 30-45 days. Authorities will issue an ownership permit once all conditions are satisfied.6. **Contract Execution and Payment**: Complete the final sales contract and transfer agreed payment amounts through official banking channels with proper documentation.7. **Official Registration**: Register the property with the Ministry of Justice or designated regional office to formalize ownership transfer and receive legal protection.8. **Title Deed Receipt**: Obtain your official title deed (Mulkia) and complete any required notarization or attestation procedures for future legal validity.

Can I buy land in Saudi Arabia remotely, without physically being in the country, and what would that require?

Remote land purchases in Saudi Arabia are legally possible through power of attorney arrangements, though certain critical steps traditionally require physical presence or authorized representation.

The remote purchase process requires appointing a qualified Saudi attorney or trusted local representative through a properly executed power of attorney. This document must be notarized by Saudi authorities and grants your representative full authority to act on your behalf during negotiations, contract signing, and registration procedures.

Several government processes have been digitized through platforms like Absher and Najiz, allowing document submission and application tracking online. However, final registration steps and notarization procedures typically require physical presence or authorized representation at government offices.

Key requirements for remote purchases include establishing a Saudi bank account for payment processing, obtaining certified translations of all foreign documents, and maintaining regular communication with your legal representative throughout the transaction. The power of attorney must be comprehensive enough to cover all potential legal requirements, including dispute resolution and future property management decisions.

What documents are required to buy land in Saudi Arabia, and which ones need to be translated or notarized?

Land purchases in Saudi Arabia require a comprehensive documentation package with specific translation and notarization requirements for foreign buyers.

Document Type	Requirement	Translation/Notarization
Personal Identification	Valid passport + Iqama/Premium Residency	Arabic translation required
Financial Documentation	Bank statements, income proof	Certified translation needed
Property Documentation	Title deed, survey report, zoning certificate	Arabic versions mandatory
Legal Authorization	Power of attorney (if remote)	Saudi notarization required
Good Conduct Certificate	Sometimes required for large transactions	Official translation needed
Sales Contract	Final purchase agreement	Saudi notary public required
Investment Approval	Ministry permit for foreign ownership	Government-issued, no translation

All foreign documents must be officially translated into Arabic by certified translators recognized by Saudi authorities. Legal documents requiring official use, including contracts and power of attorney papers, must be notarized by authorized Saudi notary publics to ensure legal validity and enforceability in Saudi courts.

Are real estate agents in Saudi Arabia reliable and regulated, and how do I choose one I can trust?

Real estate agents in Saudi Arabia operate under strict regulation by the Real Estate General Authority (REGA), which requires mandatory licensing and ongoing professional standards compliance.

Licensed agents must complete formal training programs, pass certification examinations, and maintain professional insurance coverage. REGA maintains a public database where you can verify agent credentials, check complaint histories, and confirm active licensing status before engaging their services.

When selecting a trustworthy agent, prioritize those with extensive local market experience, positive client testimonials, and proven track records in foreign buyer transactions. Request references from previous international clients and verify their familiarity with foreign ownership regulations and documentation requirements.

Professional agents should provide transparent fee structures, detailed market analyses, and comprehensive property due diligence reports. They should also maintain relationships with qualified lawyers, notaries, and government officials to facilitate smooth transaction processing.

Red flags include agents requesting upfront payments, providing incomplete documentation, or pressuring quick decisions without adequate due diligence periods.

Will the Saudi legal system protect me as a foreign buyer in case of fraud or contract disputes?

The Saudi legal system provides comprehensive protection for foreign property buyers through updated investment laws and established dispute resolution mechanisms.

The 2021 Investment Law guarantees fair and equitable treatment for foreign investors, including specific protections against unlawful expropriation except through proper judicial processes with fair compensation. Foreign buyers enjoy the same legal rights as Saudi nationals in property-related disputes and contract enforcement.

Dispute resolution options include traditional court proceedings, commercial arbitration, and mediation services. The Saudi judicial system has established specialized commercial courts with experience handling international investment disputes and contract violations.

Contract safeguards are enhanced through mandatory legal review requirements and standardized purchase agreements that clearly define buyer and seller obligations. Having contracts reviewed by qualified local lawyers ensures proper legal language and enforceability under Saudi law.

For additional protection, foreign buyers can purchase title insurance and engage legal firms with proven experience in international real estate transactions to minimize fraud risks and ensure proper legal compliance throughout the purchase process.

What are the classic mistakes foreigners make when buying land in Saudi Arabia, and how can I avoid them?

Foreign land buyers in Saudi Arabia commonly make several preventable mistakes that can result in significant financial losses or legal complications.

The most critical error is failing to conduct proper title verification, which can lead to ownership disputes or fraud. Always engage qualified local lawyers to perform comprehensive title searches and verify the seller's legal authority to transfer ownership. Never rely solely on seller-provided documentation.

Many foreigners overlook local zoning regulations and cultural considerations, resulting in unexpected restrictions on property use or development. Study municipal planning laws and engage local experts who understand both regulatory requirements and cultural sensitivities in your target area.

Inadequate due diligence on property condition, market values, and seller credibility represents another common pitfall. Conduct professional property inspections, obtain independent market valuations, and verify seller financial stability before committing to purchase agreements.

A fundamental mistake is assuming Western legal norms apply to Saudi real estate transactions. Saudi property law operates under Islamic principles and local regulations that differ significantly from Western systems. Always seek specialized local legal advice rather than relying on international legal experience.

It's something we develop in our Saudi Arabia property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are all the fees, taxes, and hidden costs involved in buying land, including agent fees, notary, registration, and government charges?

Land purchases in Saudi Arabia involve multiple fee categories that can add 8-15% to your total acquisition cost beyond the property price.

Fee Category	Typical Cost	Payment Timing
Transfer Fees	2-4% of property value	At registration
VAT (Commercial)	15% on commercial sales	At purchase
Registration Fees	0.5-1% of value	Ministry of Justice
Agent Commission	1-2% of property value	At closing
Legal Fees	SAR 10,000-50,000	Throughout process
Notary Costs	SAR 2,000-5,000	Contract execution
Municipal Fees	Annual 0.1-0.5%	Ongoing ownership

Hidden costs often include survey fees, translation services, bank charges for international transfers, and potential capital gains tax on future resale. Budget an additional 3-5% of purchase price for miscellaneous expenses including document preparation, courier services, and administrative processing fees.

Can I buy land in Saudi Arabia with cash, and if so, are there any reporting or legal implications?

Cash purchases for land in Saudi Arabia are legally permitted but subject to anti-money laundering regulations and mandatory reporting requirements for large transactions.

The Saudi Arabian Monetary Authority requires banks to report cash transactions exceeding SAR 100,000 (approximately $26,700) and implement enhanced due diligence for property purchases involving significant cash components. You must provide detailed documentation proving the legal source of funds, including bank statements, employment records, or investment liquidation certificates.

Large cash transactions trigger additional scrutiny from financial authorities who may request comprehensive documentation of fund origins and transaction purposes. Banks typically require 30-60 days advance notice for major cash withdrawals and may request government approval for transactions exceeding certain thresholds.

While cash purchases can expedite closing processes and provide negotiating advantages, they require meticulous documentation and compliance with both banking regulations and tax reporting requirements. Consider consulting with specialized financial advisors familiar with Saudi banking laws to ensure full regulatory compliance.

Are mortgages available to foreigners buying land, and if yes, what are the typical interest rates, terms, and approval requirements?

Saudi banks offer mortgage financing to qualified foreign buyers, though approval requirements are more stringent than those for Saudi nationals.

Mortgage availability requires valid Iqama (residency permit) or Premium Residency status, stable employment with recognized companies, and demonstrable income history. Banks typically require minimum monthly income of SAR 15,000-25,000 and employment contracts with at least two years remaining validity.

Loan terms vary by bank and borrower profile, with typical loan-to-value ratios ranging from 70-85% of property value. Down payment requirements generally range from 15-30%, with higher percentages required for non-residents or higher-risk profiles. Loan terms typically extend 15-25 years with both fixed and variable rate options available.

Interest rates fluctuate based on Saudi Arabian Monetary Authority benchmark rates and individual borrower risk assessments. As of mid-2025, mortgage rates typically range from 4-7% annually for qualified foreign borrowers. Islamic financing options (Murabaha) are widely available and often preferred by international buyers seeking Sharia-compliant financing solutions.

Documentation requirements include income certificates, bank statements, employment letters, and property valuation reports from approved assessors.

Is there any path to long-term residency, business visa, or even citizenship linked to buying land or investing in property in Saudi Arabia?

Saudi Arabia's Premium Residency Program provides the primary pathway to long-term residency for property investors, though it does not currently offer citizenship opportunities.

The Premium Residency Program requires minimum investment thresholds of SAR 4 million in real estate or SAR 7 million in business ventures to qualify for permanent residency status. This program allows foreign investors and their families to live, work, and conduct business in Saudi Arabia with significantly enhanced rights compared to traditional work visas.

Premium Residency holders enjoy substantial benefits including family sponsorship rights, business ownership opportunities, property acquisition rights, and exemption from traditional Kafeel (sponsor) requirements. The program provides a renewable permanent residency status that can be maintained as long as investment requirements are met.

While property investment can facilitate business visa applications and residency permits, Saudi Arabia does not currently offer citizenship through investment programs. The Premium Residency represents the highest level of long-term status available to foreign investors.

Business visas linked to property investment are available for investors establishing commercial operations, but these require additional business licensing and operational requirements beyond simple property ownership.

It's something we develop in our Saudi Arabia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Can Non-Saudis Own Property in Saudi Arabia
2. Foreign Companies Land Ownership Saudi Arabia
3. Foreign Property Ownership Saudi Arabia
4. Common Pitfalls Buying Property Saudi Arabia
5. Real Estate Ownership Investment Saudi Arabia
6. Saudi Arabia Real Estate Guide
7. Real Estate Agent Saudi Arabia
8. Property Ownership Guide Non-Saudis
9. Saudi Arabia Real Estate Law
10. Document Notarization Saudi Arabia