Non-Saudi residents are subject to a 5% withholding tax on dividends received from real estate investments in Saudi Arabia. This tax is deducted at source before the dividends are paid out to investors. For example, if a non-Saudi resident receives 1,000 SAR in dividends, 50 SAR will be withheld as tax, and the investor will receive 950 SAR. This withholding tax ensures compliance with Saudi tax regulations and affects only the income distributed to non-residents.