Live, work and rent in the Kingdom? You need to learn about the new Saudi rental penalties and laws then.
Saudi Arabia has been making sweeping changes in its real estate space. After implementing an impressive and much-needed five year ban on rental increase in the capital city, the Kingdom has now approved a schedule of the Labor Law, detailing the regulations for landlord and tenant relationship.
First reported by the Saudi Gazette, the new schedule also prohibits landlords from evicting you without legal justification.
Saudi rental penalties and laws 2025
Violations
One of the main violations highlighted in the Saudi rental penalties and laws schedule is raising rent for residential, commercial, or vacant properties in ways that go against the rules. Penalties start with a fine equal to two months’ rent for a first offense, increase to six months’ rent for a second, and reach 12 months’ rent for repeated violations. In all cases, landlords are also required to correct the issue and bring the rental terms back in line with regulations.
Penalties
The Saudi rental penalties and laws also set out fines for not registering rental contracts on the Ejar electronic rental system. A first violation results in a warning and a requirement to fix the issue, while a second offense can lead to a fine of up to three months’ rent and a third offense up to six months’ rent. Landlords in Riyadh may face the same fines if they refuse to renew a lease or force tenants to leave without a valid legal reason.
The decision also makes clear that enforcing these penalties does not take away the right of affected parties to seek compensation. This step builds on the Cabinet’s earlier approval of regulations that govern the rental relationship and protect the rights of all involved.
Real estate in Saudi
The real estate scene in the Kingdom is on the rise with brand-new rules and regulations being announced every other month. In addition to expats being allowed to own property in Saudi Arabia from 2026 there are also new land tax zones in Riyadh that you need to keep in mind. The Saudi expropriation law has also been updated.
Across Riyadh.
