In a historic step to resume property rights in Saudi Arabia, the government has approved the use of a digital identity system for non-Sawy, non-resident foreigners, which is for real estate. It comes ahead of comprehensive changes under the Non-Sure Real Estate Ownership Act prescribed to be effective in early 2026.
New digital ID route for property ownership
Saudi Arabia’s cabinet has officially approved the use of digital identity for non -resident foreigners who desire property in the state. This digital ID should be obtained and activated through a safe digital service Absher platform run by the Ministry of Interior. The rollout of this digital access mechanism is being coordinated by the General Real Estate Authority, in partnership with the Interior Ministry, Saudi Data and Artificial Intelligence Authority (SDAIA), National Information Center and other relevant government bodies. These institutions will work together to define and implement the operating mechanisms required to activate and manage digital IDs for foreign property buyers. The purpose of this decision is to formulate the basis for enforcement of the new non-Saudi Real Estate Ownership Act approved by the Council of Ministers in July 2025 and after its publication in the official gazette, 21 January 2026, 180 days has been set to be effective ((((Umm al-Qura) On 25 July 2025. As part of the infection, draft executive rules for law have already been published. They specify that foreign persons should be:
- Get a digital ID via Absher platform
- Open Saudi Bank Account
- Secure a local contact number
These essential conditions are mandatory, before any non -resident foreign legally acquire, using real estate in the country.
Inside Non-Saudi Real Estate Ownership Act
Non-Sawy Real Estate Ownership Act 2000 (1421H) cancels the earlier structure established under the real estate ownership and investment law by non-posts of 2000 (1421h). The update law represents a significant modernization of the approach to Saudi Arabia’s approach to foreign property rights. Structured in 15 articles, the law roughly defines a “non-Sure”. The word includes:
- Foreign person (residents or non-residents)
- Companies were not included under Saudi law
- Foreign non-profit organization
- Any other legal person set by the Council of Ministers
For the first time, this legal structure allows foreign individuals and institutions to achieve or obtain real estate rights within the regions specified across the state. These areas will be identified and approved by the Council of Ministers and they will be expected to open important parts of the country for foreign investment.
Scope, restriction and implementation timelines
While the law provides extensive access to real estate for foreigners, it also introduces new boundaries and obligations.Geographical and religious restrictions: Ownership rights in Mecca and Medina are tightly regulated. If they are Muslims, non-osis can only get assets in these two sacred cities. This situation underlines the sensitive nature of ownership in religiously important areas.Commerce and investment access The law includes specific provisions:
- Foreign countries
- Investment fund
- Special objective institutions
These institutions will now be able to participate in Saudi Arabia’s property market under defined conditions and inspections.Fee and Penalty:
- The settlement fee of up to 5% may apply to the sale or transfer of property by foreign owners.
- In cases of legal violations, punishment may be involved:
- SAR fined up to 10 million
- Forced sale of assets involved
Law Implementation:
- Accepted: Sankalp Number (M/14) by Council of Ministers on 14 July 2025
- Published: 25 July 2025 Umm al-Qura
- Effective date: 21 January 2026
Regulatory bodies and enforcement mechanisms
The overseas and governance for the ownership of foreign property is being formally given through a new reorganization board of General Real Estate Authority. The board is now headed by the CEO of the Authority and includes:
- Representatives of various ministries
- Officers of major government bodies
- Three private sector members
A dedicated committee will be formed within the board of the authority to monitor and implement the provisions of the law, including usufruct rights. According to the broad goals of Vision 2030, the Saudi government is aiming to create a transparent, accessible and well -regulated property market that can attract international investment by preserving the religious, social and security interests of the state.