Buying Real Estate in the UAE and Saudi Arabia: Answers to the Main Questions
Real estate markets in the UAE and Saudi Arabia are among the most dynamic and attractive in the Middle East region. Dubai remains a global investment hub with a transparent registration system and tax advantages, while Saudi Arabia is opening new opportunities for foreign investors through the megaprojects of Vision 2030, including NEOM, the Red Sea Project, and Diriyah.
However, purchasing real estate in these countries requires an understanding of significant differences in legislation, tax systems, registration procedures, and requirements for foreign investors. Each market has its own characteristics, advantages, and risks.
Why is it important to understand these differences before investing?
Dubai and Saudi Arabia offer different opportunities:
- Dubai attracts investors with its stability, full transparency of transactions, absence of taxes on income and property, and highly developed infrastructure. Here you may obtain a residency visa when purchasing property starting from 750,000 AED, and a 10-year “Golden Visa” when investing 2,000,000 AED.
- Saudi Arabia provides access to the megaprojects of the future (NEOM, Red Sea) and offers Premium Residency (the “Green Card”) with an investment of 4,000,000 SAR, which grants the right to live, work, and conduct business without a sponsor — an unprecedented offer in the regional market.
However, in Saudi Arabia foreign investors may purchase real estate only in designated investment zones (ITC), which limits the choice of properties, while in Dubai more than 60 districts are available with full freehold ownership rights.
Below you will find answers to 10 of the most frequently asked questions about purchasing real estate in Dubai and Saudi Arabia. Each answer contains specific figures, links to official sources, and practical guidance.
Questions and Answers about Real Estate in Dubai
Yes. Foreign citizens, including Russians, are allowed to buy property in Dubai in freehold zones — specially designated areas with full ownership rights. The list of these zones is approved by Dubai Government Decree No. 3 (2006) and includes more than 60 districts: Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JVC, and others.
A developer’s reliability is verified through the official Dubai Land Department (DLD) portal — dubailand.gov.ae. On the portal, you can confirm that the developer is registered, the project has a construction permit (NOC), and buyers’ funds are held in an escrow account in accordance with Real Estate Escrow Law No. 8 of 2007.
A developer installment plan (Payment Plan) is an interest-free payment schedule linked to construction stages. A standard scheme is 20–30% on booking, with the remaining amount paid in stages during construction and 20–40% upon handover. Some developers offer post-handover installment plans for 1–5 years after receiving the keys.
To obtain a UAE residence visa based on property ownership, the minimum property value is 750,000 AED (~205,000 USD), which grants the right to a 2-year visa. For properties worth from 2,000,000 AED (~545,000 USD), a 10-year “Golden Visa” with the right of renewal is issued.
In Dubai, there is no capital gains tax, property tax, or VAT on the purchase of residential real estate. The main cost is the Dubai Land Department (DLD) registration fee of 4% of the transaction value. Additionally, there is a DLD administrative fee of 580 AED and an agency commission of 2% of the price.
Questions and Answers about Real Estate in Saudi Arabia
Yes, since 2021, foreign citizens have been allowed to purchase residential property in Saudi Arabia as part of the Vision 2030 reforms. Purchases are available in special investment zones (Integrated Tourism Complexes — ITC), including NEOM, the Red Sea Project, and Diriyah. Outside ITC areas, foreigners can own property only through a company registered in the KSA.
To purchase in ITC zones, a foreigner needs: a valid passport, proof of source of income, a 6‑month bank statement, and documents confirming investment status (if any). All documents are submitted through the Saudi Ministry of Investment (MISA) or directly to the developer within the ITC zone. Notarization is mandatory.
NEOM is Saudi Arabia’s 500‑billion‑USD megaproject located in the northwest of the country in the Tabuk region. It includes several sub‑projects: THE LINE, Sindalah, Oxagon, and Trojena. Foreign investors can purchase property in NEOM directly through the official portal neom.com. The first properties for sale were launched on the market in 2024.
To obtain Premium Residency (the KSA “Green Card”) through real estate investment, the minimum property value is 4,000,000 SAR (~1,070,000 USD). The visa is issued for 5 years with the right of renewal and grants the right to live, work, and conduct business without a sponsor (kafeel).
In Saudi Arabia, there is no capital gains tax on property sales for individuals and no property tax. The main cost is VAT at 15% of the transaction value, introduced in 2020. Additionally, there is a registration fee at the Ministry of Justice amounting to 2.5% of the cadastral value.
If you still have questions or would like to discuss a specific project, please contact us. Our team has experience working in both markets and is ready to help you select the optimal solution for your investment.
Sources
- Dubai Land Department (DLD) — dubailand.gov.ae
- Dubai Government Resolution No. 3 (2006) on Freehold Zones — dld.gov.ae
- UAE Federal Law No. 8 (2007) on Escrow Accounts in the Real Estate Sector — dld.gov.ae
- UAE Golden Visa — Official Portal — u.ae
- Saudi Vision 2030 — Official Portal — vision2030.gov.sa
- Ministry of Investment of Saudi Arabia (MISA) — misa.gov.sa
- Saudi Premium Residency Center — premiuminvestment.gov.sa
- NEOM — Official Portal — neom.com
- Zakat, Tax and Customs Authority of Saudi Arabia (ZATCA) — zatca.gov.sa