Saudi Arabia’s stock market witnessed a notable rise in real estate company shares after the Capital Market Authority approved new regulations governing property ownership by listed companies, investment funds, and special purpose entities within the Kingdom, including the cities of Makkah and Madinah.
Shares of Al Akaria rose by more than 3.6% at the start of trading, while Dar Al Arkan gained about 1%. Makkah Construction and Development climbed 1.4%, and Emaar Economic City advanced by 0.2%.
The new regulations allow licensed listed companies, investment funds, and special purpose entities to own real estate or acquire in-kind rights over property within Saudi Arabia, including in Makkah and Madinah.
The Authority’s main condition for ownership in the two cities is that the properties must be designated to serve the companies’ operational needs or be used as their headquarters and branches.
As for investment funds, the Authority has permitted financial institutions to accept investments from non-Saudis in funds that invest wholly or partially in real estate assets within the Kingdom, including properties located in Makkah and Madinah.
It stressed the need to comply with the law regulating non-Saudi ownership of real estate and its executive regulations, particularly with regard to handling in-kind redemption requests or upon the termination and liquidation of a fund.
