• To enhance the attractiveness of the Saudi capital market and boost its competitiveness regionally and internationally…

Riyadh: Saudi Capital Market Authority (“CMA") called upon relevant and interested persons participating in the capital market to share their feedback on the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis for a period of fifteen (15) days ending on 15/05/1445 AH, corresponding to 29/11/2023.

According to CMA, the regulations provide foreign investors the opportunity to own shares of Saudi listed companies that have investment properties in the cities of Makkah and Madinah, through certain criteria and specific ownership percentages, which would contribute to organizing and facilitating the ownership of foreign investors in these companies.

This will positively reflect on the stimulation of investment, raise the attractiveness of the Saudi capital market, enhance the attractiveness of the Saudi capital market, and boost its competitiveness regionally and internationally. Additionally, this 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.

The main elements of the regulations include enabling Saudi listed companies to acquire the right of ownership, easement, or benefit in real estate designated for their headquarters in Makkah and Madinah, or the headquarters of their branches, provided that the entire property is used for that purpose.

In addition, allowing foreign investors to invest in shares of listed companies that have real estate investments in Makkah and Madinah in properties provided that the ownership of foreign strategic investors, whether individuals or groups, does not exceed (30%) of the listed company's shares, company's convertible debt instruments, or both with this company. 

Furthermore, CMA determined the ownership of natural and legal persons who do not hold Saudi nationality shall not exceed (49%) of the listed company's shares or the company's convertible debt instruments.

CMA stressed the need for foreign investors and listed companies to adhere to the relevant rules, regulations, and instructions, especially the law of non-Saudis owning and investing in real estate, whether when listed companies carry out their activities or when they are liquidated.

The authority emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of finalizing the Draft. Comments can be made through the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform “Istitlaa"), affiliated with the National Competitiveness Canter (NCC) through the following link: (istitlaa.ncc.gov.sa )

The project can be viewed via the following link: cma.org.sa/en/Market/NEWS/Documents/The%20proposed%20provision%20controls%20for%20the%20exception%20to%20be%20published%20for%20for%20Public%20Consultation_en.pdf

Contact:
Capital Market Authority
Communication & Investor Protection Division
Media@cma.org.sa
www.cma.org.sa

About CMA:

The Capital Market Authority (CMA) in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought it into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.

For more information about CMA, please visit the official website: www.cma.org.sa