CMA seeks public input on foreign ownership in listed firms with properties in Makkah, Madinah

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) invited public feedback on the draft regulations for excluding Tadawul-listed companies from ownership and investment in properties by non-Saudis within 15 days ending on Nov. 29, according to a statement. 

These regulations permit foreign investors to own shares in listed companies with investment properties in Makkah and Madinah, subject to specific conditions and ownership percentages. 

The move aims to boost foreign ownership in listed firms, and boost its competitiveness regionally and internationally. Additionally, it will support the local economy by attracting foreign capital to the Saudi capital market, in addition to enhancing the level of regulation of real estate sector activities in the Kingdom, in line with the great development witnessed in this sector. 

Key aspects of these regulations enable Saudi listed companies to acquire property rights in Makkah and Madinah exclusively for their headquarters or branches, provided the property is fully used for this purpose, CMA added.

The controls permit foreign investment in shares of listed companies with investment properties in Makkah and Madinah, with a cap on foreign strategic investors' ownership at 30% of the company's shares or convertible debt instruments.

The CMA's rules limit collective ownership by non-Saudi natural and legal persons to 49% of a company's shares or convertible debt instruments.

The CMA stresses the need for foreign investors and listed companies to adhere to relevant laws and regulations, particularly those governing non-Saudi real estate ownership and investment, in their operations and liquidation.

The CMA confirms that it will consider stakeholders' feedback on these regulations, inviting input through Public Consultation Platform “Istitlaa”.