Al-Marsad Newspaper: The Ministry of Investment has proposed a project to raise and improve the efficiency and effectiveness of procedures and controls related to real estate ownership and use by non-citizens. Through the “Istislah” platform of the National Competitiveness Center during the period from 17/04/2022 to 18/05/2022.
The project aims to raise and improve the efficiency and effectiveness of the procedures and controls related to the ownership and use of real estate by non-citizens with a natural and legal capacity or use of it in cities and economic regions in the Kingdom, targeting development, including the cities of Makkah and Madinah.
News website: Saudi Arabia allows foreigners to own real estate in Mecca and Medina
It is hoped that the project will contribute to the proposed amendment to the system in enhancing the competitiveness and marketing capacity of the real estate sector in the Kingdom, and stimulate growth in other economic sectors. In addition, enabling non-Saudis to own property attracts funds with controls and provisions regulating and facilitating ownership in certain areas targeted for development.
What was proposed in the project materials include the following:
Article one (merging articles one and two)
1- A non-national of a natural or legal person who is licensed by the competent authority to acquire the right of ownership, easement or usufruct over real estate, including its investment, in accordance with the controls, conditions and rules specified by the regulations for this system.
2 – By order of the Prime Minister, a regulation regulating the usufruct right in the cities of Makkah and Madinah is issued.
Article Three:
It is permissible – on the basis of reciprocity – for foreign representations accredited in the Kingdom to own the official headquarters and the residence of their head and members, and international and regional bodies may, within the limits of the agreements governing them, own their official headquarters, all on the condition of obtaining a license from the Minister of Foreign Affairs.
Fourth Article:
Article 4 will be deleted.
Article Five:
It is not permissible by any means other than inheritance to acquire the right of ownership, usufruct or easement over real estate located within the boundaries of the Two Holy Mosques, for persons who are prohibited from entering them, and the regulations shall specify the necessary provisions for this.
Article Six:
Notaries public or any other competent authority is prohibited from documenting any behavior that does not comply with the provisions of this system.
Article Seven:
The application of the provisions of this system shall not prejudice the following:
A- The property rights that were arranged for non-Saudis under the previous laws, and the provisions of this system must be implemented after its entry into force when the ownership of the property is transferred.
B – The advantages included in the rules governing the ownership of real estate for citizens of the Cooperation Council for the Arab States of the Gulf.
C- Acquisition of the right of ownership or any other original right in rem over real estate by way of inheritance.
d- Regulations, cabinet decisions, and royal orders that prevent ownership in some locations.
e- The rights and benefits included in the relevant special systems and regulations.
Article Eight:
A – This system replaces the system for non-Saudis owning real estate in the Kingdom of Saudi Arabia, issued by Royal Decree No. (M/22), dated 12/7/1390 AH.
b- This system shall be published in the Official Gazette, and shall come into force ninety days after the date of its publication.
Article Nine:
A regulation for this system is issued by order of the Prime Minister.