RIYADH – Major changes in Saudi Arabia grabbed everyone’s attention as foreign investors can now buy real estate in Makkah and Medina – Islam’s two sacred sites.
Under Saudi Arabia’s Vision 2030, the Kingdom is taking stern measures to transform its economy by attracting foreign investment to cut dependency on oil. Authorities are also fostering more investor-friendly environment by modernizing infrastructure and enhancing its financial markets.
In a bid to lure more foreign investment, KSA’s market regulator said it will allow foreign investors to be part of listed companies that own real estate in Makkah and Madina. International investors will buy shares in companies benefiting from revenues generated by the pilgrimage industry – as the counter earns over $15 billion a year from Hajj and Umrah pilgrims every year.
Amid widespread changes, Riyadh aims to welcome 30 million pilgrims annually in the next five years. The recent announcement sparked a rise in the Saudi stock market, particularly benefiting Construction and Development companies.
The country’s stock market is also slated to boost from foreign investment in real estate. Under the new regulation, foreign investments will be restricted to shares or convertible debt instruments, excluding strategic foreign investors. Additionally, non-Saudis will not be allowed to own more than 49% of shares in the companies involved.
This new step follows a previous initiative allowing foreign investment in real estate funds focused on properties. These changes are will build confidence among international investors and create new economic opportunities, positioning Saudi Arabia as a leader in a more diversified and sustainable future.
