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The CMA Approves Controls on the Ownership of Real Estate in the Kingdom by Listed Companies, Investment Funds, and Special Purpose Entities
The Capital Market Authority's (CMA's) Board approved the Controls on the Ownership of Real Estate in the Kingdom by Listed Companies, Investment Funds, and Special Purpose Entities, including the Cities of Makkah and Madinah, which shall be effective as of the effective date of the Law of Real Estate Ownership by Non-Saudis issued by Royal Decree No. (M/14), dated 19/1/1447H.
The approved Controls on the Ownership of Real Estate in the Kingdom by Listed Companies, Investment Funds, and Special Purpose Entities in the Kingdom shall replace the Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis, which were issued pursuant to a CMA Board resolution in January 2025.
The approved Controls aims to regulate the mechanism for real estate ownership by listed companies in the Saudi capital market established in accordance with the Companies Law, as well as investment funds and special purpose entities (SPEs) licensed to own real estate, and the acquisition of other real rights over real estate in the Kingdom —including the cities of Makkah and Madinah —thereby contributing to enhancing the efficiency of the capital market, increasing its attractiveness to investors, and strengthening its regional and international competitiveness.
The CMA confirms that these Controls shall not prejudice the obligation of foreign investors, listed companies, investment funds, special purpose entities, and Capital Market Institutions to comply with the relevant laws, regulations, and instructions, especially the Law of Real Estate Ownership by Non-Saudis and its Implementing Regulations, whether when listed companies, investment funds, or special purpose entities conduct their activities or when they are liquidated, thereby maintaining regulatory consistency and enhancing the clarity of the frameworks governing real estate ownership within the Kingdom.
These Controls were issued in line with the issuance of the new Law of Real Estate Ownership by Non-Saudis, which will come into effect in January 2026, and grants the CMA, under Article 4, the authority to issue controls governing the ownership of real estate in the Kingdom by listed companies, investment funds, and SPEs. These Controls also extend the relevant regulations concerning non-Saudis’ ownership of real estate, without introducing any new regulatory provisions.
The provisions of these Controls are expected to stimulate investment, enhance the participation of international investors, and improve foreign capital inflows into the Saudi capital market. They are also expected to support the local economy in general, and the accelerated growth of the real estate sector in particular, in line with the objectives of Saudi Vision 2030 in developing the financial sector.
The Controls on the Ownership of Real Estate in the Kingdom by Listed Companies, Investment Funds, and Special Purpose Entities can be accessed through the following link:
