Saudi Arabia Digital ID Lets Foreigners Own Property Before 2026 Law
Saudi Arabia has made a major move to modernize its property market by approving the use of digital identification for non-Saudi, non-resident foreigners. This allows international buyers to legally own property in the Kingdom before the Non-Saudi Real Estate Ownership Law comes into effect in January 2026. The change is part of Saudi Arabia’s plan to attract foreign investment, make processes easier with digital technology, and open up the real estate market.
The new system makes buying property simpler for foreigners. It also provides a clear legal framework that protects both the investors and the country. The digital ID is a key step in creating a secure and transparent way to invest in Saudi real estate.
How the Digital ID System Works
Foreign buyers can get their digital ID through the Absher platform, which is a secure online service managed by the Ministry of Interior. This platform helps verify identities, manage records, and track digital credentials. The General Real Estate Authority, together with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, and other government agencies, manages the system. They make sure the registration and activation of digital Ids for foreign buyers is smooth and reliable.
The digital ID system is part of the preparations for the Non-Saudi Real Estate Ownership Law, approved by the Council of Ministers in July 2025. The law will officially start on 21 January 2026, 180 days after its publication in the Official Gazette (Umm Al-Qura). This gives investors time to prepare and complete all legal requirements before buying property.
Requirements for Foreign Property Buyers
To buy property, foreign investors must meet certain rules. First, they need to obtain a digital ID via the Absher platform. Then, they must open a Saudi bank account, which will allow them to handle property payments and meet financial rules. They also need to have a local contact number, so authorities and service providers can reach them easily.
These rules ensure that foreign investors follow Saudi laws and make legal, safe transactions. By having clear steps, the government protects the property market and encourages responsible investment.
About the Non-Saudi Real Estate Ownership Law
The Non-Saudi Real Estate Ownership Law replaces an older law from 2000 and updates the rules for foreign property ownership. The new law defines “Non-Saudi” to include foreign individuals, companies not registered in Saudi Arabia, foreign non-profit organizations, and other legal entities approved by the government.
The law also creates specific zones where foreigners can own property. These zones, decided by the Council of Ministers, allow foreign buyers to invest in various parts of the Kingdom. By setting clear rules, the government attracts international investment while keeping control over important areas.
Religious and Geographic Restrictions
Although the law opens up property ownership for foreigners, there are important restrictions. For example, ownership in Makkah and Madinah is limited to Muslim buyers. This ensures that these holy cities are respected while other regions are available for foreign investment.
Outside the holy cities, foreigners can invest in residential, commercial, and mixed-use properties in designated zones. This balance allows Saudi Arabia to attract foreign capital while maintaining cultural and religious values.
Opportunities for Business and Institutional Investors
The law also allows companies and investment funds to participate in the property market. Foreign-incorporated companies, investment funds, and special-purpose entities can invest in Saudi real estate under clear rules. This encourages strategic development projects and boosts economic growth.
Institutional investors now have confidence to invest in Saudi Arabia, knowing the process is clear and legal. This opens doors for large-scale residential, commercial, and mixed-use property projects.
Fees, Penalties, and Legal Rules
The law also includes financial and legal rules to protect the property market. Property sales or transfers by foreign owners may have a disposal fee of up to 5%. If someone breaks the law, fines can reach SAR 10 million, and authorities may force the sale of the property.
These rules ensure that foreign buyers act responsibly. Clear penalties also give confidence to both the government and other investors, helping maintain a stable market.
Timeline for the Law
The law was approved on 14 July 2025 and published in Umm Al-Qura on 25 July 2025. It will take effect on 21 January 2026, giving foreign buyers enough time to complete registration, get digital Ids, and meet all requirements.
The clear timeline helps both investors and authorities prepare for the changes, making the transition smooth and well-organized.
Governance and Oversight
The General Real Estate Authority will oversee foreign property ownership. Its board includes government officials, representatives from ministries, and three members from the private sector. A special committee within the board will monitor compliance with the law and manage usufruct rights, which allow someone to use and benefit from a property owned by another.
This governance ensures that the real estate market remains transparent and well-regulated. It also reassures investors that their property rights are secure.
Benefits for Foreign Investors
With digital Ids and the new law, foreign investors now have a simple, safe way to buy property in Saudi Arabia. The process is clear, legal, and easy to follow. Investors can explore residential and commercial opportunities in different zones with confidence.
This development encourages more foreign investment, improves transparency, and supports sustainable growth in Saudi Arabia’s property sector.
Supporting Vision 2030
The digital ID initiative and property law are part of Vision 2030, Saudi Arabia’s plan to diversify the economy beyond oil. By opening the property market to foreigners, the Kingdom attracts international investment, creates jobs, and supports urban development.
The reforms also strengthen Saudi Arabia’s reputation as an investor-friendly country, encouraging innovation and sustainable development in the property sector.
Transforming the Real Estate Market
The combination of digital Ids and the new property law marks a new era for Saudi real estate. Foreign investors now have a legal, simple, and secure way to participate in the market. At the same time, Saudi Arabia protects religious and cultural values while promoting economic growth.
These reforms are expected to attract more foreign investment, improve market transparency, and support modern urban development across the Kingdom.
A Historic Step for Property Rights
Saudi Arabia’s approval of digital Ids for foreign property buyers is a historic milestone. It simplifies the buying process, provides legal clarity, and encourages responsible investment. These changes also support Vision 2030 by promoting economic diversification, transparency, and global engagement.
Foreign investors can now confidently explore the Saudi property market, while the Kingdom benefits from increased investment, job creation, and a modern, dynamic economy.
