Saudi Arabia opens consultation on draft rules for ownership of listed firms and funds
Saudi Arabia’s capital markets regulator has opened a public consultation on proposed rules governing the ownership of real estate by listed companies, investment funds and special purpose entities, including properties located in the holy cities of Makkah and Madinah.
The Capital Market Authority has invited relevant and interested participants in the capital market to submit feedback on the Draft Regulation.
The consultation will last 15 calendar days, ending on January 14, 2026.
Saudi land consultation
The framework aims to regulate the ownership structure of listed companies established under the Companies Act, as well as licensed investment funds and special purpose entities (SPEs).
It also includes the acquisition of other financial rights over real estate within the Kingdom, including Makkah and Madinah.
According to the CMA, the proposed framework aims to improve the efficiency of the financial market, increase the attractiveness of investors, and strengthen the competitiveness of the region and the country of Saudi Arabia.
The proposed regulations identify listed companies, investment funds and SPEs under conditions and specify the rules governing the ownership of shares in these entities by non-Saudi investors, whether natural or legal persons.
These rules are subject to certain conditions and defined ownership restrictions.
They also control ownership of units in investment funds that invest part or all of their assets in real estate within the Kingdom, including Makkah and Madinah.
Real estate in holy cities
The framework also regulates the ownership of real estate in the two holy cities by listed companies for non-operational purposes.
This is subject to previously established conditions, including the requirement that the foreign strategic investor must not, at any time, own shares in the listed company or any convertible debt instruments.
The CMA said the proposed controls do not affect the existing regulatory obligations of foreign investors, listed companies, investment funds, SPEs or capital market institutions under applicable laws, regulations and orders.
This includes the Law on Real Estate Ownership and Investment for Non-Saudis and its Implementing Regulations, regardless of whether businesses are operating or for sale.
The authorities said that this approach maintains the consistency of laws and improves transparency in all agencies that control the ownership of houses in the State.
The proposed regulations also build on existing frameworks governing non-Saudi real estate ownership and do not introduce new provisions.
They are in line with the newly issued Non-Saudi Real Estate Law, which comes into effect in early 2026 and empowers the CMA under Article 4 to issue regulations governing real estate ownership and listed companies, investment funds and SPEs.
Saudi CMA
Once approved, the framework is expected to stimulate investment, increase the participation of international investors, and increase the inflow of foreign capital into the Saudi capital market.
The CMA said these measures will also support the local economy and accelerate the growth of the housing sector, in line with Saudi Vision 2030 goals for the development of the financial sector.
The CMA will fully consider the comments of individuals, government agencies, the private sector, and CMA supervised organizations before giving final approval of the controls.
The response can be sent through the Unified Electronic Platform for Consulting the Public and Government Entities, linked to the National Competitiveness Center, or by email to [email protected].
