Image credit: Getty Images
In a significant development aimed at liberalizing its real estate market, the Saudi Arabian Cabinet has sanctioned the use of digital identification for foreign non-residents who wish to purchase property within the country.
The announcement is part of a larger initiative to enact the non-Saudi Real Estate Ownership Law, which is scheduled to take effect in January 2026, as reported by local media.
Understanding the regulations for foreign property owners in Saudi Arabia
To facilitate this new approach, the General Real Estate Authority will collaborate with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, along with other pertinent organizations to implement and regulate the digital ID system.
Overhaul of governance and committee establishment
The Cabinet has also endorsed governance proposals from the Strategic Committee of the Council of Economic and Development Affairs, which involve the creation of a dedicated committee within the Real Estate Authority tasked with overseeing the rights of non-Saudi ownership and usufruct agreements.
Moreover, the board of the General Real Estate Authority has undergone restructuring, now led by its CEO and featuring representatives from various ministries, government agencies, as well as three individuals from the private sector.
Essential criteria for foreign investors
In July, the Cabinet officially ratified the non-Saudi Real Estate Ownership Law. Recently, draft executive regulations were released, detailing the prerequisites for non-resident ownership.
To be eligible, foreign investors must register for a digital ID through the Absher platform, establish a Saudi bank account, and secure a local phone number, thereby paving the way for a more open property market for international investors.