Saudi Arabia has taken a historic step by allowing foreign investment in real estate companies owning property in the holy cities of Makkah and Madinah.
The announcement was made by the Saudi Capital Market Authority (CMA) as part of the Kingdom’s Vision 2030, a strategy to diversify the economy and attract foreign investment.
Under the new rules, foreign investors can purchase shares or convertible debt in these real estate companies. However, foreign ownership is limited to 49%, and there are specific restrictions for strategic foreign investors.
This initiative aims to boost the competitiveness of Saudi Arabia’s capital market and help fund development projects in Makkah and Madinah. With the Hajj and Umrah pilgrimage sector generating billions of dollars every year, this move will support the Kingdom’s target of attracting $100 billion in foreign investment by 2030.
The decision also brings Saudi Arabia in line with other countries in the region that permit foreign investment in real estate. By opening up this sector, the Kingdom hopes to encourage global investors to contribute to the development of its most sacred cities.
This reform marks a major milestone in Saudi Arabia’s economic transformation plan and demonstrates its commitment to creating opportunities for international partnerships while preserving the sanctity of its holy sites.
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