MULKIYA · GUIDES
Buying Property in Madinah: A City Guide for Muslim Buyers
Reviewed against the official register · Updated 2026-08-02
Madinah's designated zones are open to Muslim individuals anywhere in the world and closed to companies and non-Muslim buyers. The rules, costs and path.
The city, and who may own there
Madinah is the second holy city of Islam, and for a foreign buyer its ownership rule is personal. Ownership in the city's designated zones is limited to Muslim individuals and Saudi companies. For a Muslim individual that means direct ownership, registered in your own name, whether you live in Saudi Arabia or anywhere else in the world. It is a title deed, not a fund unit or a timeshare. Non-Muslim foreigners cannot own in the city, and foreign companies cannot either, whatever their shareholders believe. The rule comes from the regulator's own statement of the new law, and it has been consistent since the law took effect.
The law and the zones
The Law of Real Estate Ownership by Non-Saudis, Royal Decree M/14, has been in force since 22-01-2026. Council of Ministers Decision 43 of 23-06-2026 then approved the Implementing Regulations and endorsed the geographic zones document, which made buying actionable in practice. There are now more than 100 designated zones kingdom-wide, including zones in Madinah reserved for Muslim buyers. Zone names circulate in marketing material before anyone checks a boundary, so confirm the parcel itself against the official Saudi register of designated zones on REGA's Saudi Properties portal. The official real-estate registry holds 4,000,000+ title deeds, and a parcel is either inside a zone or outside it.
What it costs to buy and to sell
The purchase carries a 5% real estate transaction tax. Legally that is the seller's liability; in practice it is commonly priced into the deal, so read the contract and ask before you sign. If you engage a broker, the commission is capped at 2.5%, plus 15% VAT on the commission itself. When you later sell, you are the transferor, and the 5% on the sale is yours in law. Madinah is also one of four cities, alongside Riyadh, Jeddah and Makkah, where a foreign seller pays a 2% disposal fee on exit. Outside those four cities the fee is 0%. Budget both lines from the day you buy, not the day you sell.
Buying from abroad, step by step
Before acquiring, a non-resident needs three things under Implementing Regulations Article 2: a digital identity issued through a Saudi embassy, a Saudi bank account in their name, and a Saudi mobile number linked to that identity. Bank lending is structurally closed to non-residents today, so a Madinah purchase from abroad is a cash purchase. At settlement the price and the tax move through official electronic channels, and registration in the official real-estate registry is the validity condition of the purchase, not a formality after it.
The market today, stated plainly
The official residential price index moved -3.6% year on year in Q1 2026, so read Madinah as a cooling market, not a rising one. That cuts both ways: sellers do not hold the leverage the holy-city story suggests, and a careful buyer has time. Price the asset, not the story around it. Keep the 5% purchase tax and the 2% exit fee in every return calculation, and check what comparable homes actually sold for before you offer.
The honest next step
Eligibility in Madinah turns on one question beyond the usual set: whether the buyer is a Muslim individual. Mulkiya's eligibility check asks seven questions about your status and your target property, and a deterministic rules engine answers them against Royal Decree M/14 and the current ruleset, with citations. Mulkiya is not the seller and not the broker, and it takes no commission. Licensed Saudi partners execute the regulated steps. Run the check before you price any parcel in the city.
Can a Muslim who has never lived in Saudi Arabia buy in Madinah?
Yes. Muslim individuals may own directly in Madinah's designated zones whether they are resident in the Kingdom or not. The purchase still requires the standard prerequisites: a digital identity, a Saudi bank account and a Saudi mobile number.
Can a non-Muslim foreigner buy property in Madinah?
No. Ownership in the designated Makkah and Madinah zones is limited to Muslim individuals and Saudi companies. A non-Muslim buyer holding Premium Residency may instead hold a usufruct of up to 99 years.
Can a foreign company buy in Madinah?
No. Foreign companies are excluded from Makkah and Madinah entirely, inside or outside the designated zones. The holy-city allowance attaches to Muslim individuals only.
Is there an extra fee when I sell in Madinah?
Yes. On exit you pay the 5% transaction tax as transferor, plus a 2% disposal fee that applies only in Riyadh, Jeddah, Makkah and Madinah. Outside those four cities the disposal fee is 0%.
Can I finance the purchase with a Saudi bank loan from abroad?
No. Bank lending is structurally closed to non-residents today, so a Madinah purchase from abroad is a cash purchase. Plan the full price, the 5% tax and the transaction costs in cash.