Saudi Arabia’s Capital Market Authority (CMA) has unveiled a proposed regulatory framework aimed at strengthen real estate ownership rules by listed companies, investment funds, and special purpose entities. The move forms part of broader efforts to enhance market transparency, protect investors, and reinforce confidence in the Kingdom’s capital markets.
According to the CMA, the draft framework introduces clear mechanisms for owning real estate and other property rights across Saudi Arabia. By standardising how such assets are held within the capital market structure, the regulator aims to improve overall market efficiency while strengthening the competitiveness of Saudi Arabia’s financial ecosystem at both regional and global levels.
The proposed rules are closely aligned with the Non-Saudi Real Estate Ownership Law, which is expected to come into force in early 2026. This law grants the CMA the authority to issue specific controls governing real estate ownership by listed companies, licensed investment funds, and special purpose entities. Together, the two frameworks are designed to provide legal clarity and consistency for market participants.
In its statement, the CMA explained that the draft seeks to regulate real estate ownership in a way that enhances the attractiveness of the Saudi capital market for investors, while also supporting sustainable growth. The regulator emphasised that the focus is on improving efficiency and competitiveness rather than introducing additional regulatory burdens.
The framework also outlines specific conditions related to non operational real estate ownership in Makkah and Madinah, reflecting the unique regulatory sensitivities of these cities. Under the proposed rules, foreign strategic investors would not be permitted, at any time, to hold shares or convertible debt instruments in listed companies that own such non-operational real estate in these locations.
To ensure broad industry input, the CMA has opened a 15 day public consultation period, inviting feedback from market participants until January 14, 2026. The regulator will review submissions before finalising the framework.
Once approved, the proposed controls are expected to support increased investment activity, enhance international participation, and strengthen foreign capital inflows. These objectives closely align with Vision 2030, which places strong emphasis on developing both the financial and real estate sectors as key pillars of economic diversification.
The CMA also clarified that the proposed framework does not alter existing regulatory obligations for foreign investors, listed companies, investment funds, special purpose entities, or capital market institutions. Instead, it builds on current regulations, reinforcing existing structures without introducing entirely new provisions.
The proposal reflects Saudi Arabia’s ongoing efforts to modernise its capital markets, provide regulatory certainty, and position itself as a more attractive destination for longterm domestic and international investment