The proposed project aims to regulate the mechanism of ownership of real estate by companies listed on the Saudi Stock Exchange established in accordance with the provisions of the Companies Law, investment funds and special purpose establishments licensed to them, and the acquisition of other in-kind rights on real estate. The proposed project aims to regulate the mechanism of ownership of real estate by companies listed on the Saudi Stock Exchange established in accordance with the provisions of the Companies Law, investment funds and licensed special purpose entities, and the acquisition of other in-kind rights over real estate in the Kingdom - including the cities of Mecca and Medina - which contributes to enhancing the efficiency of the financial market, raising its attractiveness to investors, and enhancing its regional and international competitiveness.
The proposed project aims to regulate the mechanism of ownership of real estate in the Kingdom, including the cities of Mecca and Medina. The proposed regulations define the companies listed on the Saudi Stock Exchange, investment funds and special purpose entities subject to their provisions, in addition to clarifying the controls of ownership of non-Saudi investors “natural and legal” in the shares of these companies, according to certain aspects and specific ownership percentages, in addition to regulating 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 Mecca and Medina.
The proposed regulations 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 Mecca and Medina. The proposed regulations also regulate the ownership of listed companies of real estate within the two holy cities for non-operational purposes, subject to pre-established conditions, including that the foreign strategic investor should not own any percentage of the listed company's shares or convertible debt instruments at all times.
The CMA emphasizes that these regulations regulate the ownership of units in investment funds that invest part or all of their assets in real estate located inside the Kingdom, including the holy cities of Makkah and Madinah. The CMA emphasizes that these proposed regulations do not prejudice the commitment of foreign investors, listed companies, listed companies, investment funds, special purpose entities and capital market institutions to the relevant laws, regulations and instructions, especially the Law on Ownership of Real Estate by Non-Saudis and its executive regulations, whether when listed companies, investment funds and special purpose entities carry out their activities or when liquidating them, in order to maintain regulatory consistency and enhance the clarity of the frameworks governing the ownership of real estate within the Kingdom.
These proposed regulations come in addition to the regulations governing the ownership of real estate within the Kingdom. These regulations are an extension of the previous regulations related to the ownership of real estate by non-Saudis, without introducing new provisions, and in line with the issuance of the new Real Estate Ownership Law, which will enter into force in early 2026, and grants the Authority, under Article 4 thereof, the authority to issue regulations on the ownership of real estate by listed companies, investment funds and special-purpose establishments within the Kingdom.
This project will contribute to maintaining regulatory consistency and enhancing the clarity of the frameworks regulating the ownership of real estate within the Kingdom. The project, if approved, will contribute to stimulating investment, enhancing the participation of international investors, improving foreign capital flows towards the Saudi financial market, supporting the local economy in general and the rapid growth of the real estate sector in particular, in line with the objectives of Saudi Vision 2030 in the development of the financial sector.
The CMA confirmed that the CMA will be able to issue regulations for listed companies, investment funds and special purpose entities to own real estate within the Kingdom. <The CMA emphasized that the comments of interested and concerned individuals, government agencies, the private sector, and entities subject to the supervision of the CMA will be carefully considered and studied in order to adopt the final version of the project, which in turn will contribute to achieving the goal of improving and developing the regulatory environment, and comments can be made through the following means: The National Competitiveness Center's unified electronic platform for surveying public and government entities (Survey Platform)
