For the purpose of applying these Controls, the following words and phrases, wherever mentioned

in these controls, shall have the meanings they bear as follows, unless the context requires

otherwise:

Real Estate Ownership by Non-Saudis Law: The Law of Real Estate Ownership by Non-

Saudis issued by Royal Decree No. (M/14), dated 19/1/1447H.

Controls: The special controls on the ownership of real estate in the Kingdom—including the

cities of Makkah and Madinah—by listed companies, investment funds, and special purpose

entities, in accordance with Article 4 of the Real Estate Ownership by Non-Saudis Law.

CMA: The Capital Market Authority.

Foreign Strategic Investor: The foreign strategic investor in accordance with the Rules for

Foreign Investment in Securities.

Listed Companies: A company listed in the Saudi Stock Exchange established in accordance

with the Companies Law.

Investment Funds: a collective investment scheme aimed at providing investors therein with

an opportunity to participate collectively in the profits of the scheme which is managed by a

fund manager for specified fees.

Special Purpose Entities: an entity established and licensed under the Rules for Special

Purposes Entities.

Capital Market Institutions: a person authorised by the CMA to carry out securities business.

A) Listed companies, as well as investment funds and special purpose entities licensed under the

Capital Market Law, may own real estate or acquire other real rights over real estate, in the

Kingdom—including the cities of Makkah and Madinah—in accordance with these Controls.

B) When listed companies own real estate or acquire other real rights over real estate located

within the borders of the cities of Makkah and Madinah, such real estate must be allocated to

their headquarters or the headquarters of their branches, and the property must be fully used

for such purpose.

C) As an exception from paragraph (B) of this Article, listed companies may own real estate or

acquire other real rights over real estate located within the borders of the cities of Makkah and

Madinah for a purpose other than the purpose described in paragraph (B), provided that the

following conditions are met:

• 1) The foreign strategic investor shall not own – at all times – the shares of the listed company

  or the convertible debt instruments of the company.

• 2) The ownership of natural and legal persons jointly who do not hold Saudi nationality shall

  not – at all times – exceed 49% of the shares of the listed company or the convertible debt

  instruments of the company.

D) Capital Market Institutions may accept subscriptions from natural and legal persons who do

not hold Saudi nationality in investment funds that invest part or all of their assets in real estate

located within the Kingdom, including the cities of Makkah and Madinah.

E) Investment funds and special purpose entities must comply with the Law of Real Estate

Ownership by Non-Saudis and its Implementing Regulations when dealing with in-kind

redemption requests or upon the termination or liquidation of the fund.

A) These Controls shall not prejudice the obligation of foreign investors, listed companies,

investment funds, special purpose entities, and Capital Market Institutions to comply with the

relevant laws, regulations, and instructions, especially the Law of Real Estate Ownership by

Non-Saudis and its Implementing Regulations, whether when listed companies, investment

funds, or special purpose entities conduct their activities or when they are liquidated.

B) These Controls shall not prejudice ownership rights or other real rights over real estate lawfully

acquired by listed companies, investment funds, or special purpose entities prior to the entry

into force of these Controls.

These Controls shall enter into force as of the effective date of the Real Estate Ownership by

Non-Saudis Law.