The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the Draft Controls governing the real estate ownership by listed companies, investment funds, and special purpose entities (SPEs) in the Kingdom, including the cities of Makkah and Madinah. The consultation period will last for 15 calendar days, ending on 25/07/1447H, corresponding to 14/01/2026.
The proposed Draft aims to regulate the mechanism for real estate ownership by listed companies in the Saudi capital market established in accordance with the Companies Law, as well as licensed investment funds and SPEs, and the acquisition of other in-kind rights over real estate in the Kingdom – including the cities of Makkah and Madinah – in a manner that contributes to enhancing the efficiency of the capital market, increasing its attractiveness to investors, and strengthening its regional and international competitiveness.
The proposed controls identify the listed companies in the Saudi capital market, investment funds, and SPEs subject to its provisions. They also clarify the rules governing the ownership of shares in these companies by non-Saudi investors, whether natural or legal persons, according to specific conditions and defined ownership limits. They also regulate the ownership of units in investment funds that invest part or all of their assets in real estate located within the Kingdom, including the cities of Makkah and Madinah.
The proposed controls also govern the ownership of real estate in the two holy cities by listed companies for non-operational purposes, in accordance with the previously established conditions, including that the foreign strategic investor must not, at any time, hold any shares in the listed company or any convertible debt instruments.
The CMA confirms that these proposed Controls do not affect the existing regulatory obligations of foreign investors, listed companies, investment funds, SPEs, or capital market institutions under relevant laws, regulations and instructions, especially the Law of Real Estate Ownership and Investment by Non-Saudis and its Implementing Regulations, whether the listed companies, investment funds, and SPEs are conducting their activities or undergoing liquidation, thereby maintaining regulatory consistency and enhancing the clarity of the frameworks governing real estate ownership in the Kingdom.
Furthermore, these controls build on previous frameworks governing non-Saudi ownership of real estate, without introducing new provisions. They align with the newly issued Non-Saudi Real Estate Ownership Law, which will come into effect at the beginning of 2026 and grants the CMA, under Article 4, the authority to issue controls governing the ownership of real estate in the Kingdom by listed companies, investment funds, and SPEs.
Once approved, the Draft is expected to stimulate investment, enhance the participation of international investors, and improve foreign capital inflows into the Saudi capital market. It will also support the local economy in general and the accelerated growth of the real estate sector in particular, in line with the objectives of Saudi Vision 2030 for developing the financial sector.
The CMA emphasized that the comments of relevant and interested persons, including individuals, government entities, the private sector, and CMA's supervised entities, shall be taken into full consideration for the purpose of approving the final proposed Draft, which in turn shall contribute to the aim of enhancing and developing the regulatory environment. Opinions and comments can be received through any of the following:
The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center through the following link: (istitlaa.ncc.gov.sa ).
The prescribed form through the following email: (Laws.Regulations@cma.org.sa).
The Draft can be viewed via the following links:
The Draft Controls on the Ownership of Real Estate in the Kingdom by Listed Companies, Investment Funds, and Special Purpose Entities
Prescribed form for providing comments
