The real estate investment process varies in different countries around the Middle East.

1. BUYING REAL ESTATE IN 7
COUNTRIES IN THE MIDDLE EAST
By Ehsan Bayat

2. The Middle East is gaining popularity with foreign
real estate investors due to the area’s emerging
economies and growing real estate markets.
However, the regulations concerning these
transactions vary by country. See the following for
information about the real estate buying process
for foreign investors in seven Middle Eastern
countries:

3. 1. SAUDI ARABIA

4. Source: edward musiak / License
Although Saudi Arabia passed legislation in 2000 to allow non-nationals to own real
estate for their private residence, there are a number of challenges associated with
buying property in the country. Among these concerns are rising home prices, limited
financing options, and strict residence requirements. For example, foreign companies
and individuals must occupy the property and the Ministry of Interior requires buyers
to own the property for five years before selling to prevent speculation.The country
also forbids any non-Saudi to own property in the cities of Medina and Mecca.

5. Source: edward musiak / License
Foreign investors can buy private land to develop real estate with
prior approval from the country’s licensing authority. However, the
cost of land and construction must be worth at least $8 million.

6. 2. JORDAN

7. • Non-nationals are only allowed to purchase real estate
if the buyer’s home country maintains a reciprocal
relationship with Jordan.
• Similar to SaudiArabia, foreign buyers in Jordan have
to wait five years before selling a property, and they
must obtain purchase approval from Jordan’s Cabinet.
• Foreign investors are required to use a real estate
agent while acquiring property in Jordan, but they do
not need to hire a lawyer.

8. • During the buying and registration process,
buyers need to work with a number of other
government agencies, including the Ministry of
Finance and the Lands and Surveys
Department.
• The buyer and the seller share the 10 percent
registration fee to transfer the title after closing.

9. 3. OMAN

10. Source: Andrew Moore / License
• Oman started working on legislation in 2002 to allow expatriates
and foreign corporations to own property in Oman for investment
and residential use.
• Currently, expatriates who purchase land or villas in Oman can
only do so in freehold areas with integrated tourist complexes.
• Among these are communities such as Muscat Hills Golf & Country
Club,TheWave at Reehan Gardens, and Saraya Bandar Jissah.

11. Source: Andrew Moore / License
• Non-nationals who purchase undeveloped land must develop the
land within four years.
• Additionally, when a non-national obtains real estate in Oman, the
property owner and that person’s immediate family members all
gain residency rights.

12. 4. UNITED ARAB EMIRATES

13. • The UAE, and Dubai in
particular, are known for
their expansive and
luxurious developments,
which attract real estate
investors from across the
globe.
• As in other Middle Eastern
countries, the UAE only
allows foreign nationals and
investors to buy property in
freehold developments like
The Palm,The Greens, and
EmaarTowers.

14. • Non-UAE citizens may
purchase properties in
freehold developments
prior to their completion.
• In the UAE, buyers often
select the model of property
they want and provide an
initial deposit, which is
usually between 10 and 15
percent of the total cost.
• Buyers can also offer a
holding deposit to take a
home off the market while
they gather the necessary
documents and financing.

15. 5. QATAR

16. Source: Jonybraker / Source
• Qatar also allows non-nationals and foreign investors to buy property in the
country’s freehold developments, and buyers automatically receive
residency rights. In most cases, foreign buyers directly acquire and sell real
estate through property developers.
• Buyers usually pay a deposit when they sign a contract and then make
payments until the unit is completed.

17. Source: Jonybraker / Source
• For example, one freehold development in Qatar, calledThe Pearl, requires
buyers to pay 20 percent of the unit price to secure the property.
• Buyers subsequently pay 75 percent of the purchase price in quarterly
installments, with the remaining sum due when the unit is finished.

18. 6. IRAN

19. • Based on Iran’s real estate
ownership laws, foreign
investors can purchase real
estate for residential,
commercial, or industrial use.
• Foreign residents who move
from a property are also
obligated to transfer the
property title to a qualified
non-national or an Iranian
within six months of leaving.

20. • If a non-resident wants to
own property in Iran, they
can seek right of ownership
through the Council of
Ministers.
• Foreign buyers in Iran must
also work with the
municipality and the
EconomicAffairs and Finance
department to obtain aTax
Clearance Certificate and a
certificate of property
completion.

21. 7. BAHRAIN

22. Source: philippe leroyer / License
• Since 2003, Bahrain has
permitted foreign
investors to purchase
residential and
commercial property in
designated areas.
• Among the acceptable
districts are the Ahmed
Al-Fateh District and
Northern Manama.The
artificial island of Durrat
Al-Bahrain is also an
approved location.

23. Source: philippe leroyer / License
• To register a property in Bahrain,
foreign investors need to provide
the sales agreement, identification,
and the title deed from the former
owner.
• Buyers don’t have to work with a
real estate agent, but a lawyer can
be a valuable resource during the
buying process.
• As the buyer is usually responsible
for the registration fees, it can be
helpful to register the property
within 60 days of completing the
sales agreement to receive a 10
percent discount.