What's the purchase process to buy a property 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?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, 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 Sands of Wealth, we explore the Saudi Arabian 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.

How do foreigners check if they are even allowed to buy property in Saudi Arabia?

Foreign residents must hold a valid residency permit (Iqama) to purchase residential properties in Saudi Arabia as of January 2026.

The General Authority for Real Estate maintains an online eligibility checker through the new Istithlaa digital platform, launching in late 2025. This system verifies your legal status, employment history, and financial capacity before you begin the property search.

Non-residents face stricter requirements and can only purchase properties within special investment zones. These investors typically need to demonstrate significant capital commitments and development-focused projects to gain approval from the Ministry of Investment.

Your eligibility also depends on the specific emirate and zone where you plan to buy. Each region has different restrictions based on proximity to borders, military installations, and protected areas.

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

What types of properties can a non-Saudi legally purchase, and are there restricted zones?

Foreign residents can purchase apartments and villas for residential use in designated zones, primarily located in major cities like Riyadh and Jeddah.

Commercial and agricultural land purchases require additional regulatory approval and business licensing. These transactions typically involve more complex approval processes through multiple government ministries.

Makkah and Madinah remain largely off-limits to foreign ownership, with extremely rare exceptions for waqf properties or Islamic inheritance cases. Some areas in these holy cities may offer 99-year leaseholds instead of full ownership rights.

Border areas, military zones, and protected heritage sites are completely restricted to foreign buyers. The General Authority for Real Estate publishes updated zone maps showing exactly which areas permit foreign ownership.

Investment zones in cities like NEOM, King Abdullah Economic City, and parts of the Eastern Province offer expanded purchase rights for qualifying foreign investors.

What documents do I need to prepare before starting the process?

Document Category	Required Papers	Validity Period
Identity Documents	Passport copies, Valid Iqama	Must be current
Financial Proof	Bank statements, Income certificates	Last 6 months
Employment Verification	Work contract, Salary certificate	Current employment
Legal Clearances	Criminal background check, Tax clearance	6 months
Business Documents	Commercial license (if applicable)	Active license
Investment Approvals	Ministry pre-approvals	Case-specific
Source of Funds	Money transfer records, Asset declarations	Last 12 months

How do I verify that the property title is valid and legally transferable?

The General Authority for Real Estate operates a centralized title search system that shows complete ownership history and any encumbrances on the property.

Licensed real estate lawyers can conduct comprehensive due diligence searches to verify the property is fully registered in the unified system. This search reveals any third-party claims, outstanding debts, or liens that could block the transfer.

The title verification process includes checking for proper building permits, municipal approvals, and compliance with zoning regulations. Properties without proper documentation cannot be legally transferred to foreign buyers.

You should also verify that the current owner has the legal right to sell and that the property isn't subject to any family inheritance disputes or court orders.

Professional title insurance may be available through licensed providers to protect against future claims or title defects discovered after purchase.

What's the official process to get approval from the Ministry of Investment or other authorities?

The approval process begins with submitting your application through the new Istithlaa digital platform, which launched in late 2025 to streamline foreign property purchases.

Your application package must include all required documents, property details, and intended use declarations. The system routes your application to the appropriate government authorities based on property type and location.

The Ministry of Investment handles applications for commercial and investment properties, while the Ministry of Interior processes residential purchases. Some transactions require approval from both ministries plus local municipal authorities.

Processing times vary from 4-6 weeks for standard residential properties to 8-12 weeks for commercial or special zone investments. You'll receive digital notifications as your application moves through each approval stage.

Rejected applications include specific reasons for denial and guidance on how to address deficiencies for resubmission.

How do I secure financing or a mortgage as a foreigner in Saudi Arabia?

Saudi banks offer mortgages to foreign residents with valid Iqama and stable employment history, but lending criteria are significantly stricter than for Saudi nationals.

Foreign buyers typically need to provide 30-40% down payments compared to 20% for citizens. Banks also require comprehensive employment verification and may request salary transfers to their institution as a condition of lending.

Major banks like Saudi National Bank, Riyad Bank, and Arab National Bank have dedicated foreign resident mortgage programs. Interest rates for foreigners are typically 1-2% higher than rates offered to Saudi citizens.

Your debt-to-income ratio cannot exceed 33% of gross monthly salary, and banks may require additional collateral or guarantees depending on your employment sector and tenure in the Kingdom.

Offshore fund transfers for down payments must comply with Saudi anti-money laundering regulations and may require additional documentation proving the legal source of funds.

What taxes, registration fees, and hidden costs should I expect when buying?

Cost Category	Typical Rate/Amount	Payment Timeline
Property Registration Fee	0.5% of property value	At closing
Real Estate Agent Commission	2-5% of purchase price	At completion
Legal Fees	15,000-30,000 SAR	Before closing
Notary Fees	2,000-5,000 SAR	At signing
VAT (select properties)	15% on new builds	At purchase
Municipal Property Fees	Annual: 0.1-0.3% of value	Yearly
Title Insurance	0.3-0.8% of property value	Optional, at closing

What's the exact step-by-step process for signing the sales agreement and transferring ownership?

The sales process begins with signing a preliminary purchase agreement that includes property details, purchase price, and completion timeline.

You must pay a deposit of 5-10% of the purchase price into an escrow account managed by a licensed real estate agent or legal firm. This deposit is held until all conditions are satisfied.

Both parties then appear before a public notary to review all documents and confirm the transaction details. The notary verifies that all government approvals are in place and taxes have been calculated correctly.

The final transfer occurs when you pay the remaining purchase price and all associated fees. The notary then updates the property records with the General Authority for Real Estate to reflect your ownership.

You receive an official property deed within 1-2 weeks after the notary registration. This deed serves as your legal proof of ownership and must be kept for all future transactions involving the property.

How long does the full process usually take from start to finish?

The complete property purchase process typically takes 2-4 months from initial application to final deed registration, depending on the complexity of approvals required.

Government approval stages consume the most time, with standard residential purchases taking 4-6 weeks and commercial or investment properties requiring 8-12 weeks for ministry clearances.

Title verification and due diligence add another 1-2 weeks, while mortgage approvals for foreign buyers can take 3-4 weeks due to enhanced documentation requirements.

Properties in special economic zones or requiring environmental assessments may extend the timeline to 4-6 months. Rush processing is available for an additional fee in some cases.

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 the most common mistakes foreigners make when buying property there?

1. **Attempting purchases in restricted zones** - Many buyers don't verify zone eligibility before starting the process, leading to wasted time and application fees.2. **Using unlicensed agents or intermediaries** - Working with unregistered brokers can result in fraud or invalid contracts that aren't recognized by Saudi authorities.3. **Insufficient due diligence on property titles** - Skipping comprehensive title searches can expose buyers to existing liens, debts, or ownership disputes.4. **Inadequate documentation preparation** - Incomplete paperwork causes approval delays and potential rejections from government authorities.5. **Misunderstanding ownership restrictions** - Foreign buyers often assume they can purchase anywhere, not realizing that most areas require specific approvals or are completely off-limits.

How can I avoid scams, fake listings, or illegal intermediaries in Saudi Arabia?

Only work with real estate companies and agents licensed by the Saudi Real Estate General Authority, which maintains a public database of authorized professionals.

Verify that property listings include official registration numbers and are advertised through licensed platforms. Legitimate properties have complete documentation available for review during initial inquiries.

Avoid any transactions that bypass official government approval processes or promise to expedite approvals through unofficial channels. All legitimate purchases must go through the Istithlaa platform and proper ministry channels.

Be suspicious of properties offered significantly below market value or with unclear ownership documentation. These are often indicators of fraudulent listings or properties with legal complications.

Always insist on conducting all financial transactions through official notaries and the General Authority for Real Estate system rather than private arrangements or unregistered intermediaries.

What should I double-check before making the final payment to make sure everything is legally safe?

Obtain current clearance certificates showing the property has no outstanding liens, debts, or legal claims from the General Authority for Real Estate.

Verify that your name and details on the official deed match exactly with all previous documentation and government approvals. Any discrepancies must be corrected before payment.

Confirm that the property transfer will be performed in the presence of a licensed public notary and that all government registration requirements have been fulfilled.

Review that all taxes, fees, and registration costs have been properly calculated and paid to the appropriate authorities. Request receipts for all government payments.

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. White & Case - Saudi Arabia Approves Landmark Real Estate Ownership Law
2. Greenberg Traurig - Saudi Arabia New Real Estate Foreign Ownership Law
3. AHYSP - Saudi Arabia Foreign Property Ownership Transformational Shift
4. Arab News - Saudi Arabia Property Ownership Laws
5. Sands of Wealth - Saudi Arabia Real Estate for Foreigners
6. Times of India - Saudi New Property Ownership Laws
7. Arab MLS - Can Foreigners Buy Property in Saudi Arabia
8. YB Case - Real Estate Purchase in Saudi Arabia