First the right and the zone,
then the price of the object

01

Foreign ownership regulated by new law

Since January 22, 2026, the Law of Real Estate Ownership and Investment by Non-Saudis has been in effect. It covers foreign individuals and legal entities and relates the permissible right to the geographical area, type of object, purpose, interest limits, maximum term of usufruct and other controls. The presence of a residence or company does not in itself authorize any object.

02

The zone map is part of the due diligence

The Council of Ministers defines zones, permissible rights, maximum foreign ownership and controls. There is a special regime for Makkah and Madinah: the law maintains separate restrictions for individuals and provides special routes for certain Saudi companies, listed companies, funds and special-purpose entities.

03

The buyer is selected based on the asset and activity

Resident individual

One residential property outside designated zones, subject to special restrictions

Saudi company with foreign ownership

Rights in designated areas and property for permitted activities/personnel

Listed company / fund / SPE

Special capital-market route and CMA controls

Foreign entity without local presence

Pre-registration with the competent authority and unified number

Non-resident individual

Digital identity and Saudi Properties process

04

The right arises through correct registration

The transaction is verified and submitted through the official Saudi Properties and Real Estate Registry. For a foreign company without a local presence, REGA indicates pre-registration through MISA/Invest Saudi and obtaining a unified number 700; For non-resident individuals, digital identification is provided through Saudi diplomatic channels. The registry entry is decisive for the law.

05

Real estate due diligence is not only title deed

Title

Owner, parcel, boundaries, restrictions, mortgage and disputes

Planning

Zoning, permitted use, density, height and access

Technical

Survey, soil, utilities, building condition and code compliance

Contracts

Lease, management, contractor, warranties and guarantees

Regulatory

Foreign ownership, REGA, municipality, sector and environmental permits

Financial

RETT, VAT treatment, fees, service charges and financing security

06

RETT in general is 5%, but the transaction is determined first

Real Estate Transaction Tax Law effective April 10, 2025. The general rate is 5% of the taxable real estate transaction value. Before notarial or other registration, taxable event, valuation, seller/payment responsibility, exclusions and exemptions are checked; registration and payment are carried out through ZATCA.

07

An off-plan project cannot be sold or advertised without a license

REGA/Wafi route includes qualification developer, project license, approved disclosure and regulated guarantee account. The law prohibits fundraising and marketing without permission; Project funds are placed in a special account and spent according to established rules. The buyer checks the license, unit plan, milestones, completion, escrow mechanics and remedies.

08

Building permit binds owner, engineer and contractor

Balady workflow begins with an up-to-date title/investment basis and cadastral report. Owner authorizes design engineering office; supervising engineer, contractor and technical inspection are involved in the application. Depending on the project, soil study, traffic study, insurance, approvals and compliance with the Saudi Building Code are required.

1. 01
   Land

   Title, survey, zoning and permitted use.

2. 02
   Design

   Architectural/structural package and code review.

3. 03
   Permit

   Balady application, undertakings and fees.

4. 04
   Build

   Supervision, inspections, insurance and records.

5. 05
   Complete

   Completion evidence, utility and use approvals.

09

Construction contract distributes controlled risks

Scope

Employer requirements, drawings, specifications and hierarchy

Price

Lump sum/re-measurement, VAT, escalation and provisional sums

Time

Program, milestones, extension of time and liquidated damages

Change

Instruction, notice, valuation and impact on time

Security

Advance, performance, retention, insurance and parent guarantee

Handover

Testing, completion, defects, manuals and final account

Disputes

Engineer determination, escalation, Saudi court/arbitration and evidence

10

The bank finances a clear title and cash flow

Financing file links ownership eligibility, title, valuation, permits, project budget, presales/offtake, contractor, insurance, sponsor support, security and repayment. For a Sharia-compliant structure, the legal form of murabaha, ijara, diminishing musharaka or project finance must coincide with the actual movement of the asset and money.

11

The claim is won by daily documents

Site diary, approved program, correspondence, instructions, drawings, measurements, photos, inspections, invoices and cause-effect analysis are collected during the work. Notice periods and contemporary records apply to delay, disruption, variation, differing conditions, defects and payment claims before a dispute arises.

12

Before signing SPA or development agreement

1. 01

   Confirm buyer eligibility, zone and permitted right.

2. 02

   Conduct title, planning, technical and contract due diligence.

3. 03

   Calculate RETT, fees, VAT treatment and financing costs.

4. 04

   Check Wafi/off-plan, Balady and sector permits.

5. 05

   Set conditions precedent, refund, security and dispute route.