Arabian Post Staff -Dubai
The update by the Ministry of Investment creates a defined process for companies that want to hold property as an asset, rather than enter the Saudi market through a commercial presence. It requires applicants to submit home-country corporate documents, appoint an authorised representative in the kingdom, and complete procedures through official digital channels before pursuing property ownership.
The measure marks another step in Riyadh’s wider overhaul of real estate and investment rules as it seeks to draw foreign capital into housing, commercial property, tourism assets and urban development projects linked to Vision 2030. It also reflects a tighter regulatory approach aimed at separating passive property ownership from active economic activity, giving authorities clearer oversight of foreign corporate holdings.
Under the new requirements, non-resident foreign companies must provide a commercial registration certificate issued in their country of origin, along with their articles of association or incorporation. These documents must be translated by accredited translators and authenticated through Saudi diplomatic channels, ensuring that the applicant’s legal standing can be verified before registration is accepted.
The companies must also appoint an individual representative in Saudi Arabia through a certified power of attorney. That representative will be authorised to complete registration procedures, deal with the relevant authorities, manage required updates and handle ownership-related formalities. Where a foreign company does not possess an identification document recognised under Saudi regulations, it must obtain a digital identity through Saudi diplomatic missions abroad.
The Ministry of Investment’s framework also covers annual registration renewal. Foreign companies will need to confirm that no changes have taken place in their ownership structure or management since their registration with the ministry. Any change in corporate control, management or authorised representation is expected to be reflected in updated filings.
The new section of the Investor Guide 2026 outlines procedures for property acquisition, appointment of authorised representatives, asset management, disposal of real estate, opening bank accounts and updating company information with government bodies. The rules are available through the ministry’s electronic platform and are intended to give overseas entities a clearer route to compliance before they proceed with real estate transactions.
The update comes after Saudi Arabia’s new framework for real estate ownership by non-Saudis came into force on 22 January 2026. That system permits non-Saudi individuals, companies and other entities to own property within designated areas, subject to geographical limits, eligibility checks and regulatory controls. Applications for ownership are handled through the Saudi Properties portal, the official digital platform connected to the real estate registration system.
The Real Estate General Authority has said the ownership framework applies to residents, non-residents, companies and entities, with procedures varying by category. Non-Saudi companies with no presence in the kingdom must first register with the Ministry of Investment through the Invest Saudi platform and obtain the Unified Number 700 before completing ownership procedures electronically.
The rules also distinguish between types of corporate owners. Foreign-incorporated entities are treated differently from Saudi companies with foreign ownership, listed companies, licensed funds and special-purpose entities established under Saudi law. This distinction is important for developers, institutional investors and multinational groups examining whether to hold assets directly through an overseas entity or through a Saudi-registered structure.
Riyadh and Jeddah are expected to remain central to foreign interest because of large-scale urban development, office demand and tourism-linked projects. Makkah and Madinah are subject to tighter controls reflecting their religious status, with ownership in the two holy cities restricted under specific conditions. The broader framework is based on designated geographical zones, ownership percentages, permitted real rights and conditions that are to be applied through official regulatory documents.
The property reforms sit alongside Saudi Arabia’s push to expand non-oil sectors and increase the role of private and foreign capital in development. Real estate is one of the key pillars of that agenda, spanning residential supply, hospitality, logistics, mixed-use districts and investment vehicles tied to large public and private projects.
For foreign companies, the new rules offer a clearer legal route but also raise compliance obligations. Authentication of documents, appointment of representatives, digital identity requirements and renewal declarations add procedural discipline to a market that is opening gradually rather than through unrestricted access. The framework is likely to benefit companies with strong governance systems, transparent ownership records and long-term asset strategies.
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