Cabinet Approves New Real Estate, Investment Rules

Saudi Arabia's Cabinet has approved a wide set of decisions covering investment, real estate, municipal licensing, and the judiciary, in a package that carries direct implications for residents, investors, and expats across the Kingdom.

On the investment side, the Cabinet approved agreements on the promotion and protection of investments with Switzerland, Syria, and Uruguay, setting up bilateral protections and cooperation frameworks for cross-border investors.

A key change concerns real estate ownership by non-Saudis. Implementing Regulations to the Law of Real Estate Ownership by Non-Saudis were approved, introducing a real estate disposal fee of 2% of the property value in Riyadh, Makkah, Madinah, and Jeddah, payable to the Real Estate General Authority (REGA) on disposals within the scope of the law.

A 0% rate applies to several cases, including disposals resulting from judicial orders, disposals by non-Saudi developers who complete development within the licensed period and finish unit sales within one year, and transfers from individuals to companies or funds wholly owned by them. Other zero-rated cases include disposals outside the four principal cities, inheritance, court judgments, expropriation for public benefit, transfers to waqf or public bodies, re-transfers to the original owner within 180 days, and partitions among co-owners where no share increases. Transactions are handled via ناجز electronic services for documentation and ownership transfer.

The Cabinet also authorized the Minister of Municipal and Rural Affairs and Housing to set the basis for calculating municipal license issuance fees, meaning fees for commercial shops, restaurants, and offices are now determined by ministerial decision. Licenses continue to be applied for through Balady and municipal platforms.

In the judicial sector, the Cabinet approved amendments to several provisions of the Judiciary Law related to judicial ranks and appointment requirements. Together, the measures aim to streamline procedures and give investors and residents clearer, more predictable rules.

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