Saudi Arabia Capital Market Authority approves new controls for real estate ownership by listed companies, investment funds and special purpose entities

Saudi Arabia's Capital Market Authority (CMA) Board approved controls governing how listed companies, investment funds and special purpose entities (SPEs) may own real estate and acquire other real rights over property in the Kingdom, including in the cities of Makkah and Madinah. The controls are set to take effect on the effective date of the Law of Real Estate Ownership by Non-Saudis. The new framework replaces the CMA’s January 2025 controls that excluded Tadawul-listed companies from the meaning of “non-Saudi” under the prior real estate ownership regime. It applies to listed companies established under the Companies Law, as well as investment funds and SPEs licensed to own real estate, and is issued under the CMA’s authority in Article 4 of the new Law of Real Estate Ownership by Non-Saudis; the CMA also noted the controls extend the relevant non-Saudi real estate ownership regulations without introducing new regulatory provisions and do not affect the ongoing obligation of foreign investors, listed companies, funds, SPEs and capital market institutions to comply with applicable laws and implementing regulations, including during liquidation. The CMA linked commencement to the new Law of Real Estate Ownership by Non-Saudis, which it stated will come into effect in January 2026.