Saudi Arabia Opens Investment Opportunities in Makkah and Madina
Saudi Arabia’s market regulator, the Capital Market Authority (CMA), has announced a landmark decision to allow foreigners to invest in listed companies that own real estate in Makkah and Madina. This move is part of the kingdom’s broader strategy to attract foreign capital and bolster its economy.
The initiative aims to increase liquidity for current and future projects in these two holy cities, where pilgrimage is a key economic driver. Saudi Arabia plans to host 30 million Hajj and Umrah pilgrims annually by 2030, aligning with its Vision 2030 agenda to diversify the economy and reduce reliance on oil revenues.
In 2019, the pilgrimage industry generated $12 billion, showcasing its critical role in the nation’s financial landscape. Companies like Jabal Omar Development and Makkah Construction, major players in Makkah’s real estate sector, saw a 10% rise in share value following the announcement.
Foreign investors will be allowed to acquire shares and convertible debt instruments but cannot exceed 49% ownership of the firms involved. Strategic foreign investors, however, remain excluded from this provision.
Saudi Arabia first opened its stock market to foreign investors in 2015, with the bourse now boasting a market capitalization of $2.72 trillion. The recent decision builds on a 2021 policy allowing non-Saudis to invest in real estate funds within Makkah and Madina, further expanding investment channels in the region.
