RIYADH (Agencies): The Saudi Capital Market Authority (CMA) has announced that foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah.
This landmark decision, effective immediately, aligns with Vision 2030’s goal of boosting economic diversification and enhancing the capital market’s global appeal. While direct foreign ownership of real estate in the holy cities remains restricted to Saudi nationals, the new rules allow non-Saudis to invest through shares or convertible debt instruments of listed companies.
Foreign ownership is capped at 49 percent of a company’s shares, and strategic foreign investors are excluded from holding stakes. “This decision aims to attract foreign capital, enhance market competitiveness, and provide liquidity for developmental projects in Makkah and Madinah,” the CMA stated. The reform supports Saudi Arabia’s goal of attracting $100 billion in foreign direct investment (FDI) by 2030. Alongside this initiative, the CMA has introduced several measures to improve market access for non-Saudis, such as allowing foreign residents to directly invest in the stock market and enabling qualified foreign institutions to invest in listed securities.
This development also bolsters the real estate sector, a critical component of Vision 2030’s strategy to reduce reliance on oil revenues and drive economic growth.