Saudi Arabia’s Capital Market Authority (CMA) has announced that foreign investors can now invest in publicly listed companies owning real estate in Makkah and Madina, aiming to attract foreign capital and enhance liquidity for current and future projects in these holy cities.
This initiative is part of Saudi Arabia’s Vision 2030 economic reform plan, which seeks to diversify the economy beyond oil revenues. The kingdom aims to welcome 30 million pilgrims annually by 2030, with pilgrimage-related activities having generated approximately $12 billion in 2019.
Under the new regulations, foreign investment is limited to shares and convertible debt instruments, excluding strategic foreign investors. Non-Saudis are restricted from owning more than 49% of the shares in the involved companies. Following the announcement, companies like Jabal Omar Development Company and Makkah Construction and Development Company, both owning real estate in Makkah, saw their stock prices rise by 10%.
This move builds upon a 2021 decision that allowed non-Saudis to subscribe to real estate funds investing within Makkah and Madina.
