Saudi Arabia’s capital markets regulator has opened a public consultation on proposed rules governing real estate ownership by listed companies, investment funds and special purpose entities, including properties located in the holy cities of Makkah and Madinah.
The Capital Market Authority invited relevant and interested participants in the capital market to submit feedback on the Draft Controls.
The consultation will run for 15 calendar days, ending on January 14, 2026.
Saudi real estate consultation
The draft aims to regulate the mechanism for real estate ownership by listed companies established under the Companies Law, as well as licensed investment funds and special purpose entities (SPEs).
It also covers the acquisition of other in-kind rights over real estate within the Kingdom, including Makkah and Madinah.
According to the CMA, the proposed framework seeks to enhance capital market efficiency, increase investor attractiveness, and strengthen Saudi Arabia’s regional and international competitiveness.
The proposed controls identify the listed companies, investment funds and SPEs subject to the provisions and clarify the rules governing ownership of shares in these entities by non-Saudi investors, whether natural or legal persons.
These rules are subject to specific conditions and defined ownership limits.
They also regulate ownership of units in investment funds that invest part or all of their assets in real estate located within the Kingdom, including in Makkah and Madinah.
Real estate in the holy cities
The draft also governs ownership of real estate in the two holy cities by listed companies for non-operational purposes.
This is subject to previously established conditions, including a requirement that the foreign strategic investor must not, at any time, hold any shares in the listed company or any convertible debt instruments.
The CMA said the proposed controls do not affect existing regulatory obligations of foreign investors, listed companies, investment funds, SPEs or capital market institutions under applicable laws, regulations and instructions.
This includes the Law of Real Estate Ownership and Investment by Non-Saudis and its Implementing Regulations, whether entities are operational or undergoing liquidation.
The Authority said this approach maintains regulatory consistency and enhances clarity across the frameworks governing real estate ownership in the Kingdom.
The proposed controls also build on existing frameworks governing non-Saudi ownership of real estate and do not introduce new provisions.
They align with the newly issued Non-Saudi Real Estate Ownership Law, which comes into force at the beginning of 2026 and grants the CMA authority under Article 4 to issue controls regulating real estate ownership by listed companies, investment funds and SPEs.
Saudi CMA
Once approved, the draft is expected to stimulate investment, increase international investor participation, and boost foreign capital inflows into the Saudi capital market.
The CMA said the measures would also support the local economy and accelerate growth in the real estate sector, in line with Saudi Vision 2030 objectives for financial sector development.
The CMA will fully consider comments from individuals, government entities, the private sector, and CMA-supervised entities before granting final approval of the controls.
Feedback can be submitted through the Unified Electronic Platform for Consulting the Public and Government Entities, affiliated with the National Competitiveness Centre, or via email to [email protected].
Will Milner
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