Saudi Arabia Opens Real Estate to Foreigners

In a move to attract foreign capital and boost liquidity for projects in the holy cities of Mecca and Medina, Saudi Arabia's Capital Market Authority (CMA) has announced that it will permit foreign investment in listed companies owning real estate within these areas.

This decision aims to increase foreign investment in the region, providing a much-needed influx of capital for present and future projects. The CMA has outlined that foreign investment will be limited to shares, convertible debt instruments, or a combination of both, specifically excluding "strategic foreign investors." This strategic move is expected to have a positive impact on the local economy and development of the holy cities.

It's worth noting that non-Saudi nationals will be restricted from owning more than 49% of shares in these companies, ensuring that local control and ownership are maintained. This limitation is likely intended to balance the need for foreign investment with the desire to preserve local interests and authority over the development of these significant religious sites.

As Saudi Arabia continues to diversify its economy and open up to foreign investment, this move is seen as a significant step towards achieving its economic goals. The decision is expected to attract investors from around the world, eager to be a part of the development and growth of these sacred locations.