🕌 How Can Foreigners Own Property in Makkah & Madinah? (2025 Guide)

🧭 Quick Answer

Direct ownership by foreigners in Makkah and Madinah is generally not allowed. However, there are limited legal pathways—such as investing through public companies, long-term leases, or Saudi-registered firms—that can give you exposure to property in these holy cities.

1. ✋ Direct Ownership Still Off-Limits

Foreign nationals—expats or non-GCC citizens—cannot own residential or commercial property directly in Makkah and Madinah. These cities are treated as religious sanctuaries and are restricted to Saudi citizens only.

2. ✔️ New Legal Investment Option: Buy Shares in Listed Companies

In early 2025, Saudi Arabia updated its regulations allowing foreigners to hold up to 49% in publicly listed companies on Tadawul that own property in Makkah or Madinah. This offers a legal, indirect investment route.

• ✅ You don’t own the property directly.
• ✅ You gain exposure through the company’s real estate holdings.

3. ⌛ Long-Term Lease Rights

Foreigners—including those with premium residency—can secure usufruct rights (long-term leases) in holy city developments, often for up to 99 years.

• Leases are typically subject to official approval.
• Usually limited to hotel or pilgrimage-support projects.

4. 🏢 Via Saudi-Registered Companies

Foreign investors may gain access by setting up or investing in a Saudi-registered company (with MISA approval) that owns land or buildings in Makkah or Madinah.

• This applies mostly to high-value projects (e.g., SR 30 million+).
• Ordinary individuals cannot directly use this route.

5. 🏦 GCC Nationals vs. Other Foreigners

GCC nationals may have more flexibility, but still need official government clearance.
Non-GCC foreign expats are restricted to the legal paths above.

6. ✅ Other Legal Ways to Invest

• REITs (Real Estate Investment Trusts): Foreigners can invest in REITs holding property in the holy cities.
• Corporate and investment projects: High-value development plans may receive approval to own property outside sanctified precincts.

7. ⚠️ Risks & Legal Considerations

• Avoid proxy ownership via Saudi nationals—it’s illegal and can lead to forfeiture or penalties.
• Even gifted or inherited property in holy cities requires special government approval.

8. ✅ How to Invest Legally (4 Steps)

1. Open a Tadawul (stock market) account via a registered broker.
2. Buy shares in listed companies or REITs with Makkah/Madinah property.
3. Secure a long-term lease or usufruct right in approved projects.
4. Form or invest in a Saudi company meeting legal requirements and thresholds (e.g., SR 30M).

📝 Summary Comparison

Strategy	Direct Ownership	Control	Requirements
Public Company Shares	No	Indirect	Tadawul account
REIT Investment	No	Indirect	REIT purchase
99‑Year Lease Rights	Lease only	Lease	Project approval
Saudi Company Ownership	Company owns	Indirect	MISA license, SR 30M+
Proxy Ownership	Illegal	Risky	Avoid

🏁 Final Thoughts

While foreigners cannot directly own property in Makkah or Madinah, there are legal and regulated ways to invest:

• Shareholding in listed firms
• Long-term lease rights
• REITs
• Corporate participation via MISA

Want to learn more about legal rights as an expat? Read our guide on your rights under Saudi labor law.

If you're living in a compound, see what life in Saudi expat compounds is really like.