Saudi-listed companies exempted from prohibition under law on real estate ownership by non-Saudis in Makkah, Madinah

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Saudi Arabia’s Cabinet approved exempting all Saudi-listed companies from the prohibition stated in Article No. 5 of the Law on Real Estate Ownership and Investment by Non-Saudis.

King Salman also issued a Royal Decree in this regard.

According to Argaam’s data, Article No. 5 of the law states: 

1) Other than by way of inheritance, a non-Saudi may not have the right to ownership, easement, or benefit of real estate located within the boundaries of the cities of Makkah and Madinah. Acquirement of right to ownership shall be excepted if the owned real estate is endowed to a specific Saudi entity, in accordance with the provisions of Sharia, and provided that it is stipulated in the endowment document that the relevant endowment entity has the right to practice trusteeship over the endowed property, in accordance with the regulations.

2) The term "Non-Saudi" mentioned in paragraph (1) of this Article shall mean the following:

a) a natural person not holding the Saudi nationality.

b) a non-Saudi company.

c) a Saudi company founded, co-founded, or partially owned by a natural or corporate person not holding the Saudi nationality, with the exception of the following:
 

1- Banks and real estate financing companies licensed by the Saudi Arabian Monetary Authority, provided that their acquirement of real estate is for the purpose of financing Saudi nationals, for their offices or branches, or for the practice of their activities in accordance with the regulations set by the Saudi Arabian Monetary Authority;

2- Listed companies not engaged in real estate activities, provided that the whole real estate is designated for their offices or branches, or the practiceof their activities in accordance with rules set by the Capital Market Authority;

3- Entities specified by the Council of Ministers in accordance with rules set for this purpose.

d) persons or categories listed as such pursuant to a decision by the Council of Ministers or the President of the Council of Ministers.