Capital Market Authority has launched a public consultation on proposed rules governing real estate ownership by listed companies, investment funds and special purpose entities, including properties located in the holy cities of Makkah and Madinah. The regulator has invited market participants and other interested stakeholders to submit comments on the draft controls during a 15-day consultation period, which will close on January 14, 2026. The proposed framework seeks to regulate how listed companies established under the Companies Law, licensed investment funds and special purpose entities acquire and hold real estate and other in-kind property rights within the Kingdom. This includes assets located in Makkah and Madinah. According to the CMA, the draft controls aim to enhance capital market efficiency, improve investor appeal and strengthen Saudi Arabia’s regional and global competitiveness. The proposals clearly define the categories of listed companies, funds and entities subject to the rules and outline conditions governing ownership by non-Saudi investors, whether individuals or legal entities, along with specified ownership limits. The draft also regulates ownership of units in investment funds that invest part or all of their assets in real estate within the Kingdom, including in the two holy cities. In addition, it governs non-operational ownership of real estate in Makkah and Madinah by listed companies, subject to previously established conditions. These include a requirement that foreign strategic investors must not hold shares or convertible debt instruments in the listed company at any time. The CMA clarified that the proposed controls do not alter existing regulatory obligations for foreign investors, listed companies, investment funds, special purpose entities or capital market institutions under current laws and regulations. These include the Law of Real Estate Ownership and Investment by Non-Saudis and its implementing rules, regardless of whether entities are operational or in liquidation. The authority said the approach ensures regulatory consistency and clarity, while building on existing frameworks governing non-Saudi ownership of real estate. The proposals align with the new Non-Saudi Real Estate Ownership Law, which comes into force at the start of 2026 and empowers the CMA to issue such controls. Once finalised, the CMA said the measures are expected to stimulate investment, increase international participation and support foreign capital inflows into Saudi Arabia’s capital markets, while accelerating growth in the real estate sector in line with national development objectives.