The Ultimate Guide to Real Estate Investment for Foreigners in Saudi Arabia (2025 Edition)

Introduction: The Doors Are Open

For decades, the Saudi Arabian real estate market was a fortress—exclusive, private, and closed off to the outside world. Expatriates, who helped build the nation’s infrastructure, hospitals, and schools, were perennial renters, sending their savings abroad to buy homes in their countries of origin.

But 2025 is a different era.

Under the visionary leadership driving Vision 2030, the Kingdom has unlocked its doors. The government recognizes that for Saudi Arabia to become a global investment powerhouse, it must allow international talent and capital to put down roots.

Today, the question is no longer “Can I buy property in Saudi Arabia?” The question is “Where should I buy, and how quickly can I start?”

At Muasasat Abraj Al Malak Real Estate (Abraj Al Mullak), we are seeing a surge in inquiries from non-Saudis—doctors from the UK, engineers from India, investors from Egypt and the US. They all see the same thing: a market that is appreciating faster than almost anywhere else in the world.

In this definitive guide, we will navigate the legal landscape of foreign ownership, the game-changing Premium Residency program, and the practical steps you need to take to own your piece of the Kingdom.

1. The Legal Breakdown: How Can Foreigners Own Property?

There are currently two primary pathways for a non-Saudi to own real estate in the Kingdom. Understanding the difference is crucial for your investment strategy.

Pathway A: The “Resident” Route (MoI Approval)

If you are a legal resident in Saudi Arabia (holding a valid Iqama), you are permitted to own one single property for your personal residence.

• Conditions: You must obtain approval from the Ministry of Investment (MISA) via the Absher platform. The process has been streamlined significantly in recent years.
• Limitations: This property is strictly for living, not for pure investment/renting out (though regulations are evolving). You generally cannot sell it immediately without restrictions.

Pathway B: The “Premium Residency” Route (The Gold Standard)

This is the game-changer. The Premium Residency (iqama mumayyaza) is effectively the Saudi “Green Card.” Holders of this residency enjoy rights almost identical to citizens regarding real estate:

1. Commercial & Residential: You can own residential, commercial, and industrial properties.
2. Multiple Properties: You are not limited to one home. You can build a portfolio.
3. Makkah & Madinah: While direct ownership in the Holy Cities is still restricted, Premium Residents can acquire usufruct rights (leasehold) for up to 99 years in these holy zones.

Pathway C: Corporate Investment

Foreign companies can also own property if it is required for their professional activities (e.g., corporate housing or headquarters), provided they have the appropriate investment license from MISA.

2. The Premium Residency: A Ticket to Wealth

In 2024, the government expanded the Premium Residency into five new categories. The most relevant for our clients at Abraj Al Mullak is the Real Estate Owner Residency.

The Deal: If you purchase property worth 4 Million SAR (approx. $1.06 million USD) in Saudi Arabia, you qualify for Permanent Premium Residency.

• The Benefit: You get permanent residency for yourself and your family, the right to work, the right to conduct business, and the right to invest in the Saudi stock market (Tadawul) as a resident.

There is also a renewable residency option for lower investment thresholds (subject to current regulation updates). This program links your immigration status directly to your asset, turning your home into your visa.

3. Why Invest in KSA? (vs. Dubai, London, or Home)

Why should a foreigner put their hard-earned money into Riyadh concrete instead of the London Stock Exchange or a condo in Dubai?

1. The Growth Trajectory

Saudi Arabia is an “Emerging Market” with “Developed Market” infrastructure.

• Dubai is a mature market; prices have already peaked in many areas.
• Riyadh is in the early stages of a massive boom. With the population doubling by 2030, the demand for housing is structural and long-term, not speculative. You are buying at the beginning of the curve.

2. Tax Efficiency

Saudi Arabia remains a tax haven compared to the West.

• No Personal Income Tax: Your rental income is not taxed as personal income (though corporate structures differ).
• No Annual Property Tax: There is no recurring “Council Tax” or property tax based on value. You pay a one-time Real Estate Transaction Tax (RETT) of 5% upon purchase, and that’s it.

3. Currency Stability

The Saudi Riyal (SAR) is pegged to the US Dollar (3.75 SAR = 1 USD). For investors from countries with volatile currencies (like India, Pakistan, Egypt, or Turkey), holding assets in Saudi Real Estate is a hedge against inflation. It is effectively a Dollar-denominated asset.

4. High Rental Yields

In cities like London or New York, a 3% rental yield is considered good. In Riyadh, specifically in high-demand areas like North Riyadh, investors are seeing gross yields of 6% to 9%.

4. Where Should Foreigners Invest?

At Abraj Al Mullak, we advise foreign investors to stick to “Blue Chip” locations—areas with high liquidity and established demand.

Riyadh: The Safe Bet

Riyadh is the political and economic capital. It is where the jobs are.

• North Riyadh (Al Malqa, Al Narjis): Best for luxury residential investments. High appreciation potential.
• Olaya / City Center: High demand for commercial office space due to the RHQ program.

Jeddah: The Tourism Play

Jeddah is the gateway to Makkah and the Red Sea. With the massive “Jeddah Central” project, the city is reinventing itself. It offers a more relaxed lifestyle and is popular for vacation rentals.

Dammam/Khobar: The Industrial Hub

The Eastern Province is the heart of Aramco and the petrochemical industry. It offers stable, consistent rental yields from the oil and gas workforce, though capital appreciation is generally slower than Riyadh.

5. Step-by-Step: How to Buy as a Foreigner

Buying property here is different from Europe or the US. Here is the roadmap Abraj Al Mullak uses for our international clients:

Step 1: The Search Identify your budget and purpose (Investment vs. Personal Use). Contact us to view listings that match your criteria. Warning: Online listings in KSA are often outdated. You need a broker with real-time market access.

Step 2: The Negotiation Once we find the property, we negotiate the price. In Saudi culture, negotiation is expected. We handle this to ensure you don’t pay the “foreigner price premium.”

Step 3: The Check We verify the Title Deed (Sukuk). It is now digital, ensuring absolute clarity on ownership. We also check for any liens or mortgages on the property.

Step 4: The Approval (for Non-Premium Residents) We assist you in applying for the MoI license via the Absher platform. This requires providing your salary certificate and bank statements.

Step 5: The Transaction (Wafi / Efragh) The transfer of ownership happens digitally through the Ministry of Justice’s platforms. You pay the price via a certified Manager’s Cheque or bank transfer, pay the 5% RETT, and the deed is instantly transferred to your digital wallet.

6. Financing for Expats: Can I Get a Mortgage?

Yes. Saudi banks have opened up mortgage products to expatriates.

• The Terms: generally, banks will finance up to 70-80% of the property value for residents.
• The Requirements: You usually need to have your salary transferred to the bank and have been employed in KSA for at least 1-2 years.
• Interest Rates: Rates are linked to the SAIBOR (Saudi Interbank Offered Rate). They have fluctuated recently, so it is vital to shop around. Abraj Al Mullak can connect you with mortgage advisors at major Saudi banks (Al Rajhi, SNB, SAB) to get you pre-approved.

7. The Critical Mistake: Ignoring Maintenance

We cannot stress this enough to our foreign clients: The Saudi climate is harsh. Investors often buy a property, leave the country, and come back a year later to find it covered in dust, with a broken AC and a faded façade.

This destroys your ROI.

If you are an absentee landlord (living in a compound or another country), you must have a maintenance contract.

• Who watches the property?
• Who fixes the leak before it floods the apartment below?
• Who cleans the AC filters to keep the electricity bill low?

Abraj Al Mullak offers Property Management and Maintenance Packages specifically designed for foreign investors. We act as your eyes and ears on the ground. We collect the rent, handle the repairs, and deposit the profit into your account.

Conclusion: Your Global Asset Awaits

The window of opportunity to enter the Saudi market at these price points is narrowing. As the mega-projects of 2030 come online and the world descends on Riyadh for the Expo and the World Cup, property values are poised to surge.

For the foreign investor, Saudi Arabia offers a rare combination: the stability of a G20 economy, the growth potential of an emerging market, and a tax-friendly environment.

Don’t let paperwork or legal confusion stop you. At Muasasat Abraj Al Malak, we specialize in guiding international clients through the entire process—from the airport to the notary, and finally, to your new front door.

Ready to diversify your portfolio with Saudi Real Estate?

Contact the Expat Investment Experts

Let us help you navigate the legalities and find the best opportunities in Riyadh.

• Phone / WhatsApp: +966 53 323 5231
• Email: youremails@gmail.com
• Website: abrajalmullak.com
• Address: Riyadh, Saudi Arabia

Abraj Al Mullak: Your Gateway to Kingdom Real Estate.