Several Arab residents in the Kingdom who want to stay in the country for a long period of time are interested in buying housing units to escape the high rental prices of flats and apartments. However, they are facing difficulties to register real estate in their names.

Regulations in Saudi Arabia allow expatriates to own homes or other properties for investment but they must pay a tax estimated at 10 percent of the property’s value.

Expats from the Gulf countries such as Palestine, Lebanon and Syria in particular are interested in buying housing units in the Kingdom in the form of houses or real estate to ensure a more stable future.

According to Saudi Arabia’s foreign investment regulations, an expatriate who is licensed to practice a business or a profession is entitled to own the property for residential purposes or to practice their business or profession. They can also buy homes to accommodate employees.

Some Arab residents have registered housing units in the name of Saudis while others prefer to buy real estates in Bahrain or UAE.

Abdullah Al-Ahmari, head of the real estate appraisal committee at Jeddah Chamber of Commerce and Industry (JCCI), said registering an expatriate’s property under the name of a Saudi national is a clear violation of the country’s regulations and could result in the confiscation of the property and a fine for all involved.

Expatriates with high incomes mostly buy real estate outside Saudi Arabia, particularly in Gulf states because they are uncertain of their stay in the Kingdom.

Abdullah Rabi, manager of a real estate company in Jeddah said Indian residents in Saudi Arabia own several homes in Dubai and Abu Dhabi. Many Sudanese nationals in the Kingdom also own apartments in Cairo, he added.

Talal Samarqandi, head of JCCI’s engineering office committee and former real estate committee member, said a foreigner desiring to own a property in Saudi Arabia must meet stipulations like having a good financial record and approval from the Ministry of Interior.

“There are a lot of foreigners who were born and raised here. This segment is particularly interested in owning the home they live in instead of the rented units that can become a burden on their monthly incomes,” he added.

Former head of the real estate committee of JCCI Muhammad Al-Amir said foreigners in Saudi Arabia can own properties only if the profession listed on their residence permit is that of foreign investor.

“I bought an apartment in Jeddah estimated at SR750 thousand. It is better than living in a small flat for SR33 thousand a year. The rental prices of housing units in the Kingdom have soared during the last 7 years,” Samer Younes, a Palestinian resident told Arab News.

Younes said that he couldn’t go back home to Palestine owing to the political turmoil in his country. He said that in order to stay in the Kingdom with his family, he had saved all his salaries for the last 10 years to buy an apartment to save himself the burden of the high rental prices of apartments.