Saudi Arabia has made a significant move by approving the use of digital ID systems that will allow non-resident foreigners to own property in the Kingdom. This groundbreaking decision is designed to enhance the accessibility of the real estate market, marking a progressive step in the nation’s ongoing economic reform initiatives.
The Cabinet’s endorsement enables the utilization of digital IDs as the country prepares to implement the Non-Saudi Real Estate Ownership Law, which was ratified in July and is set to be enacted in January 2026, according to a Cabinet resolution published last Friday.
Development of Implementation Mechanisms
The General Real Estate Authority will play a crucial role in collaborating with various agencies, such as the Ministry of Interior, the Saudi Data and Artificial Intelligence Authority (SDAIA), and the National Information Center, to establish operational mechanisms for the digital ID system. The Cabinet’s resolution emphasized that this identity framework must be functional before the property ownership law comes into effect.
Furthermore, the approval aligns with the Strategic Committee of the Council of Economic and Development Affairs, focusing on governance concerning non-Saudi ownership and usufruct rights. A specialized committee will be created within the board of directors of the General Real Estate Authority to scrutinize these issues closely.
In addition, the Cabinet has restructured the authority’s board, which will now be led by the Minister. The board will include the CEO, representatives from ten ministries and governmental entities, and three members from the private sector appointed by the Council of Ministers for renewable three-year terms.
The ministries involved encompass Interior, Municipalities and Housing, Finance, Justice, Economy and Planning, Investment, Environment, Industry and Mineral Resources, alongside the General Authority for State Properties and the General Authority for Survey and Geospatial Information.
Requirements for Non-Residents
The General Real Estate Authority published a draft on executive regulations for the law in July. This draft outlines that non-resident foreigners wishing to acquire or utilize property in the Kingdom must obtain and activate a digital ID through the Absher platform. Additionally, they will need to open a Saudi bank account and secure a local contact number.
These measures aim to ensure transparency and regulatory compliance throughout the property registration process, as Saudi Arabia looks to attract increased foreign investment in its real estate sector.
Friday’s Cabinet approval follows Resolution No. 16 of the Council of Ministers, which considered recommendations from the Council of Economic and Development Affairs and several detailed memoranda from the Board of Experts.
This initiative is part of Saudi Arabia’s wider economic reform agenda under Vision 2030, targeting income diversification, greater foreign investment, and the progressive development of sectors like tourism and real estate.