Non-Saudi Property Ownership Rules in Makkah Explained

Saudi Arabia's law allowing non-Saudi real-estate ownership officially took effect on 22 January 2026, introducing a regulated framework overseen by the Real Estate General Authority (REGA). The rules set out specific conditions for sensitive areas, including the holy city of Makkah.

Saudi Living notes that claims circulating about a particular country becoming the first foreign owner of property in Makkah are not confirmed by any verified information available to us, and should be treated with caution until officially established.

Under the applicable rules, ownership in Makkah is limited to Muslim natural persons and permitted Saudi companies. A non-Saudi individual's ownership does not become effective until it is formally registered in the Saudi real-estate registry, and the eligible geographical zones and detailed requirements are defined by the implementing regulations and the geographical-scopes document.

Fees to be aware of

The law permits an additional non-Saudi disposition fee of up to 5% of the transaction value. The available information indicates an applied REGA fee of 2% for qualifying dispositions in Makkah, Riyadh, Madinah, and Jeddah. A Saudi real-estate transfer tax of 5% may also apply, subject to statutory exemptions.

For residents and expats, the framework signals a gradual, carefully regulated opening of the property market. However, important details, such as any minimum investment amount, application process, or purchase prices, are not confirmed in the information available to us. Anyone considering a transaction should complete it only through the official real-estate registration framework managed by REGA, which remains the relevant authority for ownership in the Kingdom.

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