RIYADH: Saudi Arabia now allows foreign investment in real estate companies especially those with properties in Makkah and Madinah. The Saudi Capital Market Authority (CMA) announced this decision which aligns with Vision 2030, which aims to diversify the economy and boost foreign investment.
Even though foreigners can invest in shares or convertible debt of listed companies, their total ownership will be limited to 49% of the company’s shares. Only strategic foreign investors are not allowed to acquire stakes in these companies. These initiatives are formed with an aim to boost the competitiveness of the capital market, attract foreign capital and support developmental projects in the holy cities.
The changes are a part of its initiative to strengthen the real estate market and reduce dependency on oil revenue. Saudi Arabia plans to attract $ 100 billion in foreign direct investment (FDI) by 2030. The CMA has previously implemented various initiatives to make the market more attractive to foreign investors, like granting foreign investors to invest in the stock market and allowing non-Saudis access to funds in Makkah and Madinah.
After the announcement, the share prices of the real estate companies increased, which are listed in the Saudi stock exchange, with companies such as Knowledge Economic City, Jabal Omar Development, and Makkah Construction experiencing significant gains.
