Arab News
Arab
News, Thurs, Jan 01, 2026 | Rajab 12, 1447
Saudi CMA proposes new real estate ownership rules
Saudi Arabia:
Saudi Arabia’s capital markets regulator
has proposed new controls governing real estate ownership by listed companies,
investment funds and special purpose entities, as part of efforts to strengthen
market oversight and investor confidence.
The Capital Market Authority said the draft framework regulates mechanisms for
owning real estate and other in-kind property rights across the Kingdom, with
the aim of enhancing capital market efficiency and competitiveness.
The framework aligns with the Non-Saudi Real Estate Ownership Law, which is
expected to take effect in early 2026 and grants the CMA authority to issue
controls governing real estate ownership by listed companies, investment funds
and special purpose entities.
“The proposed draft aims to regulate the mechanism for real estate ownership by
listed companies in the Saudi capital market, as well as licensed investment
funds and special purpose entities, 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 CMA said in a statement.
The draft also sets out specific conditions for non-operational real estate
ownership in Makkah and Madinah. Under the proposed rules, a foreign strategic
investor must not, at any time, hold shares or convertible debt instruments in
the listed company.
The regulator has opened a 15-day consultation period, ending Jan. 14, 2026, to
gather feedback from market participants before finalizing the rules.
Once approved, the framework is expected to support investment, enhance
international participation and strengthen foreign capital inflows, in line with
Vision 2030 objectives to develop the financial and real estate sectors.
The CMA said the proposed controls would not affect existing regulatory
obligations for foreign investors, listed companies, investment funds, special
purpose entities or capital market institutions, adding that they build on
existing frameworks without introducing new provisions.