How to start a Real Estate Business in Saudi Arabia?

The Kingdom of Saudi Arabia (KSA) has recently emerged as a top choice for business setup among entrepreneurs. Wondering why? The introduction of Saudi Vision 2030 has opened up numerous opportunities for many industries to thrive in the country. This scheme has not only revolutionized the economy but also fostered innovation, foreign investment, and sustainable growth.

The real estate market is something that will not go out of fashion. With urbanisation and new development projects taking center stage, the has emerged as a lucrative market for foreign investors. Ready to make a mark in this industry? Read on to find out how to start a real estate business in Saudi Arabia.

Overview of Saudi Arabia Real Estate Market

With projects such as Qiddiya, NEOM, and the Red Sea Project, the real estate market is witnessing unprecedented growth. Given this, now is the right time to invest in Saudi Arabia real estate. As of 2025, the Saudi Arabia real estate market is valued at USD 74.99 billion. With a projected CAGR of 7.89 per cent between 2025 and 2030, the market is expected to reach USD 109.63 billion by 2030.

Who Can Buy Property in Saudi Arabia?

Are you thinking about the laws associated with buying property in Saudi Arabia? The good news is that as long as you have a legal residence permit or Iqama, you are allowed to invest in real estate in KSA. You can purchase real estate for personal or business purposes, provided you meet the set requirements. The authority in charge of approving foreign investment in Saudi Arabia is the Saudi Arabian General Investment Authority (SAGIA).

Requirements to Start a Real Estate Business in Saudi Arabia

To start a real estate business in Saudi Arabia, you will need to fulfill the following criteria:

1. Documentation

Submitting accurate documents is essential to obtain the relevant license and start a company. You must provide a certified copy of the shareholding partner's commercial registration and a copy of financial statements. In addition to that, you also need to provide a copy of your national ID, if you are a national of any GCC country and personal information is not registered in the ABSHAR system.

2. Adhere to Regulations

You must comply with the rules and regulations laid down by the authorities. Some of these include -

• A partner must disclose whether they have been previously licensed.
• When applying for a real estate license in Saudi Arabia, you must provide the national ID/Premium Residence/Residence, as well as commercial registration information for any Saudi companies involved. If you possess premium Iqama in Saudi Arabia, these are not required to be submitted.
• If you are investing in property, it should be located outside the domicile of Mecca and Medina and the investment must be of a minimum of 30 million Saudi Riyal.
• The capital invested must meet the financial requirements for the activity and align with the total percentage of Saudi shareholders.

Process of Starting a Real Estate Company in Saudi Arabia

The steps mentioned below are required to be followed to start a real estate business in Saudi Arabia without any hassle:

1. Draft Business Plan

Create a business plan which outlines the strategy and approach for starting and running a business. It should also include information such as products and services, marketing strategy, financial projections, and more.

2. Select Company Structure

To start a real estate business in Saudi Arabia, it is important to select an appropriate business structure. Some of the entities you can choose include Limited Liability Company (LLC), sole proprietorship or partnership.

3. Appoint Local Sponsor

As per the local guidelines, a real estate business setup in Saudi Arabia requires a local sponsor. The sponsor can be an individual or a business entity and must own a majority of the shares in the company. You need to make sure that the local service agreement is availed as it states the terms and conditions of the sponsorship and ensures compliance with Saudi regulations for foreign investors.

4. Choose Trade Name

Select a name for the business that is unique and catchy by following the country’s naming regulations. Trade name approval for the same must be obtained from the Ministry of Commerce.

5. Rent Office Space

You must rent an office space that acts as the official address of the business for legal and administrative purposes. It is important to choose a location that aligns with the business needs and complies with local regulations.

6. Register your Company

Submit a completed application form along with necessary documents to the Ministry of Commerce and Investment (MOCI) to register your business.

7. Complete the Payment

Pay the requisite fees to the authorities to complete the entire process.

How Can Commitbiz Help?

Commitbiz LLC, a Corporate Service Provider assists entrepreneurs in setting up a company in the UAE and other Middle Eastern countries. Our expertise and knowledge about Saudi Arabia’s business environment sets us apart from our competitors. Our business setup consultants not only assists with the company incorporation process but also help understand the market in detail so that the business can reach unprecedented heights. Contact us to start a real estate business in Saudi Arabia.