Saudi Arabia Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Saudi Arabia's landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Landlord between landlord and tenant. Overall, while Saudi law provides balanced protections, landlords generally hold more practical leverage, especially regarding enforcement and contract negotiation. Tenants who understand their rights and comply with regulations can access effective legal remedies, but landlords typically have stronger control over the rental relationship.

Rents: Can landlord and tenant freely agree rents in Saudi Arabia?

Yes, in Saudi Arabia, landlords and tenants generally have the freedom to agree on rent amounts for both residential and commercial properties. The rental market operates largely on the basis of mutual agreement between the parties, with lease terms—including rent, duration, and other conditions—negotiated directly.

While initial rent is agreed upon freely, rent increases during the lease term are regulated. Tenants have protection against arbitrary or excessive rent hikes, and any increase usually requires notice in advance and must comply with local rules. Residential leases must be registered through the Ejari system (an online platform for rental contracts), which helps regulate rental agreements and enforce tenant rights.

Deposits

In Saudi Arabia, tenants are required by the Ejar platform to pay a one-time security deposit when registering a lease agreement. This deposit serves to guarantee the property is returned in good condition. The deposit amount is agreed upon during contract registration and is held securely by the Ejar portal as a neutral custodian. When the lease ends or is canceled, the deposit is refunded to the tenant’s electronic wallet after deducting any agreed-upon charges for damages.

The Ejar system does not set a fixed limit on the security deposit amount; however, the deposit must be mutually agreed upon by the landlord and tenant and recorded during the contract registration. Usually, the deposit equals one or two months' rent, but the exact amount can vary depending on the property's condition and the landlord's terms.

What rights do landlords and tenants have in Saudi Arabia, especially as to duration of contract and eviction?

Lease contracts are typically for a fixed term, most commonly one year, though longer or shorter periods can be agreed upon by both parties. These contracts must be registered through the Ejar platform, which ensures transparency and enforceability. Once registered, the lease terms are binding unless both parties agree to amend or terminate the contract early.

Landlords have the right to receive timely rent payments according to the contract terms and may request a security deposit to cover potential damages or unpaid rent. They can seek to evict tenants legally if the tenant breaches the lease terms, such as failing to pay rent, damaging the property, or violating usage terms. However, eviction must follow the proper legal procedure, usually by filing a complaint with the Real Estate Rental Disputes Committee. This committee reviews the case and may issue an eviction order if the landlord’s claim is upheld. Importantly, landlords cannot forcibly evict tenants, for example by changing locks or cutting utilities, without a legal ruling. Tenants have the right to contest eviction claims and present evidence in their defense.

Tenants have the right to live in the property for the agreed lease term without facing arbitrary eviction. Rent increases during the contract term are generally not allowed unless specifically stated in the contract or under exceptional regulatory provisions. When a rent increase is proposed before renewal, tenants must receive prior notice, and any increase must be reasonable and properly documented. Tenants are also entitled to expect that the property will be maintained in good condition throughout the lease. At the end of the lease, tenants are entitled to have their security deposit returned, minus any deductions for damages beyond normal wear and tear.

Legislation

Tenant and landlord relations in Saudi Arabia are primarily governed by the Real Estate Rental Law, which was issued by the Saudi Ministry of Housing.

How effective is the legal system in Saudi Arabia?

The legal system in Saudi Arabia is generally considered effective in handling eviction cases, particularly due to the clear regulations established under the Real Estate Rental Law and the support of specialized bodies like the Real Estate Rental Disputes Committee. This committee offers a relatively fast and accessible forum for resolving landlord-tenant disputes, including eviction cases, helping to reduce the burden on regular courts.

Eviction proceedings typically require landlords to follow formal legal steps, such as filing a complaint with the committee and obtaining an official eviction order. This process protects tenants from arbitrary or illegal eviction actions, such as lockouts or utility shutoffs without due process. Tenants also have the right to contest eviction claims and present their evidence.

While the system is designed to be fair and efficient, some delays can occur, particularly if tenants resist eviction after an order is issued. Enforcement may then involve coordination with local authorities, which can extend the timeline. Additionally, language barriers and lack of legal representation can affect how smoothly tenants or landlords navigate the process.

Brief history: Recent changes in landlord and tenant law in Saudi Arabia

Recent reforms in Saudi Arabia's landlord–tenant laws have aimed to increase transparency, modernize payment methods, and pave the way for greater market openness.

A major development took place on January 15, 2024, when the Real Estate General Authority required that all residential rent payments be made exclusively through the Ejar platform using Mada or SADAD digital payment systems. This change is designed to simplify transactions, minimize fraud, and guarantee that payments are automatically recorded and deposited into landlords' bank accounts within five working days. As a result, paper rent payment receipts are being gradually eliminated.

Looking forward, Saudi Arabia intends to permit foreign ownership of property in specific areas, such as parts of Riyadh and Jeddah, beginning in January 2026. This initiative seeks to attract international investment while preserving protections for sensitive locations like Makkah and Madinah.