The executive regulations of the foreign ownership of real estate system set a fee of 2% on the value of a non-Saudi's disposal of real property rights in four cities: Riyadh, Mecca, Medina, and Jeddah.

The regulations, published by Umm Al-Qura newspaper on Friday, impose a zero fee on other real estate transactions, except as stipulated.

Cases that will receive zero fee include division of inheritance, final court rulings, expropriation for public interest, and some gratuitous transfers to a waqf or a public legal entity.

The regulations define the procedural framework for non-Saudis to own real estate and acquire other real property rights.

This includes requiring non-Saudi individuals not residing in Saudi Arabia to obtain a digital identity approved by the Ministry of Interior, open a bank account in the Kingdom in their name, and issue a Saudi mobile number linked to the digital identity before ownership.

The regulations require non-Saudi companies to register with the Ministry of Investment before owning property.

These companies will also be required to disclose direct and indirect owners, and open a bank account within the Kingdom.

Read also: 5 requirements for a non-resident to open a bank account to own property in Saudi Arabia

Additionally, the company must notify the ministry within 15 days if 5% or more of its ownership is transferred, or if arrangements grant another party influence over its decisions or limit its independence.

Fines up to 10 million riyals

The regulations impose a fine on a non-Saudi for submitting false or misleading information that leads to property ownership, up to 5% of the value of the real property right involved, not exceeding 10 million riyals, along with the sale of the real property right.

There will also be graduated fines on Saudi companies with non-Saudi participation if they provide false information about their actual need for the property, and on those who obstruct inspectors or fail to correct violations within the specified deadline.

The regulations mandate that all financial transactions related to ownership or real estate disposal be completed through electronic payment methods.

The General Authority for Real Estate will establish an electronic portal for non-Saudis to own real estate or acquire other real property rights or dispose of them, linked to the real estate register.