If you are thinking of buying a commercial property in Saudi Arabia, you are on the right path. Saudi Arabia has one of the leading economies in the world, and investing in it is an intelligent business decision. But buying a commercial property in KSA is not an easy task. We have for you a guide that will show you tips on buying your first property. Let’s begin!
Why buying a commercial property in Saudi Arabia is a clever idea?
Before we get into our guide, let’s see why you should invest in property in Saudi Arabia. The reason is apparent the country has one of the best economies in the world. Here is how they can do it.
- The first reason is that the Kingdom of Saudi Arabia has made its wealth off of its enormous oil reserves. The only country that has more oil than KSA is Venezuela.
- But the Saudis do not stop there. The second reason is that they are diversifying their economy with the help of foreign investments. The sectors of their economy they are looking to improve are education, health, and real estate.
- Finally, they are improving their economy by funding foreign countries by giving loans and starting business projects. And they are purchasing foreign properties. So by buying a commercial property in Saudi Arabia, you will become a part of this system looking to maximize profit and improve KSA.
But before you can come to Saudi Arabia and start your business, you need to know the procedures of shipping to Saudi Arabia. Learn about freight shipping and calculate your freight class so you do not end up paying extra for your shipment.
Can you own commercial property in the Kingdom of Saudi Arabia?
The first thing that we will discuss in our guide about purchasing a business property in KSA is if you can legally own one.
The answer is complicated. There are two ways you can own property in Saudi Arabia.
- The first way is if you are an expat with a legal residency in Saudi Arabia. As a legal resident, you can own one property in Saudi Arabia everywhere except Mecca and Medina. To buy a place, you need to get permission from the Ministry of Interior. Attaining authorization from the Ministry of Interior can last up to one year. When you finally get it, you can own a property and use as a personal residence or lease it as a private residence.
- The second way you can own property is if you are a company. You can buy a commercial property as a company. But as soon as you put money into a property as a foreign citizen, it becomes a foreign investment. And you need to follow another process that we will explain in the next paragraph.
Buying a commercial property in Saudi Arabia as a business owner
The second thing we will talk about in our guide is how to get an investment license. To reiterate, you can only own commercial real estate in Saudi Arabia as a company, and to do that, you need an investor’s license. Here are the steps for getting an investment license
- First, you will need to get your business’s registration validated by the embassy of Saudi Arabia.
- Second, you need to verify your banking statements with the embassy.
These two steps will give you an investment license and allow you to own commercial property as a company. When you own commercial real estate in the Kingdom of Saudi Arabia, you can do these four things with it.
- First, you can own or rent real estate to other companies.
- Second, you can own property and use it to build projects. But if you want to invest in developing a project, the minimum amount is 30- million Saudi Riyals. In addition, when you acquire a property, you must complete your project in five years or get an extension from the Ministry of Investment.
- Third, you can own or rent homes to your employees working on an authorized project.
- Finally, own or rent property as a residence to workers who have legal residency status.
Now that you know what you need to do to buy a commercial property and what you can do with it when you buy it. Let’s move on to hiring a real estate agent.
Getting a real estate agent in Saudi Arabia
Finding a real estate agent in Saudi Arabia will not be that hard. Let’s see what steps you need to take to find the perfect one.
- If you have any friends in the same line of work as you, the first step is to ask them to recommend a reliable Saudi commercial real estate agent. Asking friends is the first step because you can trust your friends more than a random review on the internet. But if you do not have friends with a business in Saudi Arabia, move on to the second step.
- The second step is to use the internet. You only need to type the phrase – commercial real estate agent Saudi Arabi – and you will get plenty of results. When you get the results, do more digging to find the best candidates.
- Move on to the third step, scheduling an interview in person if you are in Saudi Arabia or over the internet. You will not have to worry about a communication barrier because many people in Saudi Arabia speak English.
- Finally, pick the one that is the most responsive to your needs.
When the process of hiring is over, talk to him about where you want to buy property in Saudi Arabia. The amount you are willing to spend and the size of the commercial property. And if you can not acquire a property, learn how to negotiate a commercial lease.
It is complicated to purchase a business property in Saudi Arabia. We hope that our Guide to buying a commercial property in Saudi Arabia helps you. Good luck!
Lisa Roberts has been engaged in writing blog articles for the last 7 years. Although she started off her career in the moving industry, her experience brought diversification to the content topics she covers. Today, her range of topics spans from moving across the globe to everyday lifestyle tips, marketing, real-estate news, etc. In her spare time, Lisa enjoys running, reading books and spending time with her dogs Lue and Sill. As a great lover of life, she finds something practical and useful in every experience, which contributes to her portfolio as well.