Saudi Arabia’s capital markets regulator has opened a public session on proposed guidelines governing actual property possession by listed corporations, funding funds and particular goal entities, together with properties positioned within the holy cities of Makkah and Madinah.
The Capital Market Authority invited related and individuals within the capital market to submit suggestions on the Draft Controls.
The session will run for 15 calendar days, ending on January 14, 2026.
Saudi actual property session
The draft goals to control the mechanism for actual property possession by listed corporations established beneath the Corporations Regulation, in addition to licensed funding funds and particular goal entities (SPEs).
It additionally covers the acquisition of different in-kind rights over actual property inside the Kingdom, together with Makkah and Madinah.
Based on the CMA, the proposed framework seeks to reinforce capital market effectivity, enhance investor attractiveness, and strengthen Saudi Arabia’s regional and worldwide competitiveness.
The proposed controls establish the listed corporations, funding funds and SPEs topic to the provisions and make clear the principles governing possession of shares in these entities by non-Saudi buyers, whether or not pure or authorized individuals.
These guidelines are topic to particular situations and outlined possession limits.
Additionally they regulate possession of items in funding funds that make investments half or all of their belongings in actual property positioned inside the Kingdom, together with in Makkah and Madinah.
Actual property within the holy cities
The draft additionally governs possession of actual property within the two holy cities by listed corporations for non-operational functions.
That is topic to beforehand established situations, together with a requirement that the international strategic investor should not, at any time, maintain any shares within the listed firm or any convertible debt devices.
The CMA mentioned the proposed controls don’t have an effect on present regulatory obligations of international buyers, listed corporations, funding funds, SPEs or capital market establishments beneath relevant legal guidelines, laws and directions.
This contains the Regulation of Actual Property Possession and Funding by Non-Saudis and its Implementing Rules, whether or not entities are operational or present process liquidation.
The Authority mentioned this strategy maintains regulatory consistency and enhances readability throughout the frameworks governing actual property possession within the Kingdom.
The proposed controls additionally construct on present frameworks governing non-Saudi possession of actual property and don’t introduce new provisions.
They align with the newly issued Non-Saudi Actual Property Possession Regulation, which comes into drive in the beginning of 2026 and grants the CMA authority beneath Article 4 to subject controls regulating actual property possession by listed corporations, funding funds and SPEs.
Saudi CMA
As soon as authorized, the draft is predicted to stimulate funding, enhance worldwide investor participation, and increase international capital inflows into the Saudi capital market.
The CMA mentioned the measures would additionally help the native financial system and speed up development in the true property sector, in step with Saudi Imaginative and prescient 2030 targets for monetary sector growth.
The CMA will totally take into account feedback from people, authorities entities, the personal sector, and CMA-supervised entities earlier than granting closing approval of the controls.
Suggestions may be submitted by means of the Unified Digital Platform for Consulting the Public and Authorities Entities, affiliated with the Nationwide Competitiveness Centre, or through e mail to [email protected].
