Capital Market Authority: Regulations for Real Estate Ownership by Listed Companies 2026
In a move aimed at enhancing the investment environment and developing regulatory frameworks for the financial and real estate sectors, Capital Market Authority all interested parties and stakeholders in the financial market to submit their views on the draft "Regulations for Real Estate Ownership in the Kingdom by Companies Listed on the Saudi Stock Exchange, Investment Funds, and Special Purpose Establishments." This vital project includes regulations governing real estate ownership in the holy cities of Mecca and Medina . The period for receiving comments will last for 15 calendar days, ending on January 14, 2026.
A regulatory framework that aligns with Vision 2030
This move by the Capital Market Authority aligns with the objectives of Saudi Vision 2030 , specifically the Financial Sector Development Program, which aims to open new horizons for foreign and domestic investment and enhance the attractiveness of the Saudi financial market to become a leading regional and global hub. These regulations are part of a package of legislative reforms aimed at diversifying the non-oil economy, of which the real estate sector is a key pillar. The proposed project aims to regulate the mechanism for listed companies, investment funds, and special purpose vehicles to own real estate and acquire real property rights, thereby enhancing market efficiency and transparency.
Details of the regulations and privacy of the Two Holy Mosques
The draft law outlines the regulations governing non-Saudi investors' (both individuals and legal entities) ownership of shares in listed companies that own real estate in the Kingdom, including areas within the boundaries of the holy cities of Mecca and Medina. These regulations take into account the unique status of the two holy cities, governing listed companies' ownership of real estate within them for non-operational purposes under specific conditions. A key condition is that the foreign strategic investor may not own any shares in the company or convertible debt instruments, thus ensuring sovereignty and sound regulation.
Integration with the new non-Saudi ownership system
The Authority affirmed that these regulations do not operate in isolation from other systems, but rather complement them, specifically system for non-Saudi ownership of real estate , scheduled to come into effect at the beginning of 2026. Article 4 of this system grants the Authority the power to issue regulations specific to listed companies and funds. The Authority emphasized that the project does not infringe upon the obligations of foreign investors and financial market institutions under existing regulations and bylaws, thus maintaining regulatory consistency and clarity for investors.
Expected economic impact
The adoption of this project is expected to significantly impact foreign capital inflows into the Saudi financial market, providing a clear and attractive legal framework for institutional investment. The project will also support the accelerated growth of the real estate sector by enabling investment funds (such as REITs) and companies to expand their real estate portfolios more flexibly, positively impacting the local economy and enhancing the Kingdom's competitiveness on the international investment map.
