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Saudi Arabia

Riyadh · SAR · pegged

Corpus dated July 2026

For landowners

Saudi land values are rising fast, and the new 2026 rules bring serious foreign partners into designated zones. The White Land fee now penalises leaving land idle — partnering is increasingly the smarter move over holding.

For developers

Balady e-permits are fast; Wafi licence gates off-plan sales. Zones for foreign ownership are brand-new (Jun 2026 regs) — verify plot eligibility before underwriting. RETT 5% + up to 5% non-Saudi disposal fee on exit.

Build cost (USD/m²)

$1,200–1,900

Sale prices (USD/m²) · Mid-market

$1,300–2,700

Sale prices (USD/m²) · Prime

$3,200–6,500

Typical owner share

25–40%

of revenue / units

Title system: Title deeds (sukuk) migrating to the unified electronic Real Estate Registry (Torrens-style), first-registration drive since 2024.
Foreign ownership: New non-Saudi ownership law (M/191) in force Jan 2026; executive regs + zones approved Jun 2026 — Riyadh limited to designated mega-project zones (Qiddiya, New Murabba, Diriyah, KAFD…); Jeddah centre + 55 zones; Makkah/Madinah restricted. Registration via the 'Saudi Properties' platform.
Authorities: REGA + Real Estate Registry; permits via Balady (MoMRAH); Royal Commission for Riyadh City for planning.
Zoning metric: FAR per Balady zoning; Riyadh largely low-rise FAR ~1.5–2.5, higher on corridors/KAFD; 5-tier white-land fee zones.
Height control: Predominantly villas G+2; towers on designated corridors (King Fahd Rd/KAFD 300m+); GACA aviation limits.
Building code: Saudi Building Code SBC 2018 series (IBC-based), phased mandatory; Mostadam green rating optional.
Approvals & timeline: Balady permit (~1–3 mo) + Wafi off-plan sales licence + utility NOCs; giga-project JVs individually negotiated. (~4–9 months)
Transfer taxes & fees: RETT 5%; new disposal fee up to 5% on non-Saudi transfers; White Land fee raised up to 10%/yr on idle land + vacancy fee (2025 law).
Foreign capital: Premium Residency 'Real Estate Owner' at SAR 4M unmortgaged; 100% foreign developer via MISA licence (~SAR 30M project minimum); free repatriation.

Common JV structures

Joint Development Agreement — Revenue Share

20–40%

Same grant of development rights, but the owner takes a percentage of gross sales revenue instead of units. Developer controls pricing and sales; escrow and audit rights are standard protections.

Land-as-Equity SPV

20–50%

Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).

Musataha

3–6%

A registrable in-rem right (up to 50 years, renewable) letting the developer build and own buildings on the owner's land — mortgageable and sellable. Buildings revert at expiry per contract. The Sharia-compliant workhorse of UAE/GCC land partnerships.

Development Management + Profit Share

10–30%

Owner keeps ownership and funds the project; the developer acts as development manager for a base fee (2–5% of cost) plus a promote (10–30% of profit above a hurdle). Effectively a JV without a land transfer.

Risk flags

⚠ Regulatory newness — foreign-ownership zone maps weeks old, practice untested
⚠ Cost/price escalation and delivery capacity
⚠ Oil-linked fiscal cycle

Escalation ~5–8%/yr on giga-project demand.