In a significant move aimed at boosting the real estate market, Saudi Arabia has officially approved the use of digital ID for non-resident foreigners seeking to own property in the Kingdom. This pivotal decision marks a progressive step toward simplifying property ownership for expatriates and aligns with the government’s broader economic objectives. The implementation of digital ID for non-resident foreigners opens up new avenues in real estate investment, setting the stage for upcoming regulatory changes.
Saudi Arabia’s Cabinet has approved the use of a digital identity system to allow non-Saudi, non-resident foreigners to own property in the Kingdom, as part of new rules opening up the real estate market.
The decision enables digital IDs to be utilized ahead of the implementation of the Non-Saudi Real Estate Ownership Law, which was approved in July and will take effect in January 2026, according to a Cabinet resolution published on Friday.
Mechanisms Under Development
The General Real Estate Authority will coordinate with the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), the National Information Center, and other relevant bodies to develop mechanisms for activating the digital ID. This collaborative effort aims to ensure that the digital ID system is ready before the Non-Saudi Real Estate Ownership Law officially comes into force.
The Cabinet resolution also supports a decision made by the Strategic Committee of the Council of Economic and Development Affairs regarding governance for non-Saudi ownership and usufruct rights. A dedicated committee will be established within the General Real Estate Authority’s board of directors to oversee these critical matters.
Additionally, the Cabinet has amended the structure of the authority’s board, which will now be led by the Minister and comprise the CEO, representatives from ten ministries and government entities, as well as three private-sector members appointed by the Council of Ministers for renewable three-year terms. The ministries involved include the Interior, Municipalities and Housing, Finance, Justice, Economy and Planning, Investment, Environment, Industry and Mineral Resources, along with the General Authority for State Properties and the General Authority for Survey and Geospatial Information.
Steps Required for Non-Residents
In July, the General Real Estate Authority released a draft of the law’s executive regulations. Under this draft, non-resident foreigners wishing to own or use property in Saudi Arabia will need to obtain and activate a digital ID through the Absher platform. Additionally, they must open a local bank account and secure a Saudi contact number.
These measures are designed to ensure transparency and compliance in the property registration process, reflecting Saudi Arabia’s commitment to attracting more foreign investment into its real estate sector. The Cabinet’s approval on Friday follows Resolution No. 16 of the Council of Ministers, which included recommendations from the Council of Economic and Development Affairs and various memoranda from the Board of Experts.
The Non-Saudi Real Estate Ownership Law is a key component of the Kingdom’s wider economic reform program under Vision 2030, which aims to diversify income sources, attract foreign investment, and develop sectors such as tourism and real estate.