MULKIYA · GUIDES
Buying Property in Makkah and Madinah as a Muslim Foreigner
Yes. Muslim individuals, in the Kingdom or abroad, may own directly in the designated zones of Makkah and Madinah under the law in force since 22-01-2026.
Who may own in the holy cities
Ownership in the designated zones of Makkah and Madinah is limited to Saudi companies and Muslim individuals, whether they live in the Kingdom or anywhere else in the world. That is direct ownership, registered in your name, not a fund unit or a timeshare. Non-Muslim foreigners cannot own in the holy cities. 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 behind it
Royal Decree M/14, the Law of Real Estate Ownership by Non-Saudis, 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 Makkah and in Madinah reserved for Muslim buyers. Zone boundaries are confirmed parcel by parcel against the official Saudi register of designated zones, not against press lists.
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. If you engage a broker, the commission is capped at 2.5%, plus VAT on the commission itself. When you later sell, you pay the 5% as transferor, plus a 2% disposal fee that applies only in Riyadh, Jeddah, Makkah and Madinah. Elsewhere in the Kingdom that exit fee is 0%.
If you hold Premium Residency
Premium Residency holders who are not Muslim individuals sit in a separate class in the holy cities. They may hold a usufruct right of up to 99 years in Makkah and Madinah under the Premium Residency law. That is a long, registrable right to use the property, but it is not a title deed. For a Muslim buyer, direct ownership in a designated zone is the stronger position, and it is open to residents and non-residents alike.
Companies and other structures
Foreign companies may not acquire in Makkah or Madinah, even inside designated zones and even if every owner is Muslim. The holy-city allowance is personal: it attaches to Muslim individuals. A foreign company buying elsewhere in the Kingdom must first register with the investment ministry, and its eligibility stops at the holy-city boundary. If a holding structure matters to you, take advice on the rest of the Kingdom, but plan for the holy cities in your own name.
How the purchase works from abroad
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 holy-city purchase is a cash purchase. Mulkiya is not the broker or the seller and takes no commission; a deterministic rules engine applies the law to your answers, and licensed Saudi partners execute the regulated acts. The honest next step is the five-question check: five answers against the official register, and you know exactly which zones are open to you.
Can a Muslim who has never lived in Saudi Arabia buy in Makkah?
Yes. Muslim individuals may own directly in the designated zones of Makkah and Madinah 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 in the holy cities?
No. Ownership in the 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 property 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 Makkah or 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%.