Saudi Arabia opens foreign property investments in holy cities Makkah and Madinah
Starting today, foreign investors can purchase shares and convertible debt instruments in firms listed on the Saudi stock exchange that own either public or private real estate within the boundaries of the cities, according to a statement from the Capital Market Authority. An exception applies to strategic foreign investors and foreign ownership cannot exceed 49% of a company’s listed shares, the CMA said.
Shares of some real estate firms rose on the news. Jabal Omar Development Co. jumped as much as 10% at the open in Saudi Arabia following the news. Other related companies include Dar Al Arkan Real Estate Development Co., Taiba Investments Co.. Emaar Economic City and Makkah Construction & Development Co.
Saudi Arabia has been undertaking efforts to boost its appeal as an investment destination under the Vision 2030 diversification agenda, including by introducing sweeping reforms to investment laws and loosening rules on foreign ownership rules in the stock market. The kingdom is also carrying out various expansion projects in Makkah and Madinah as it aims to accommodate 30 million foreign worshippers a year by 2030.
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“The Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” the CMA said.
In 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of the holy cities, but not make direct investment in company shares or debt instruments.
