Saudi Arabia allows foreign investment in real estate firms listed on stock exchange
Date
1/27/2025 8:36:55 AM
(MENAFN) In a significant move aimed at boosting the Kingdom’s capital market and aligning with Vision 2030, the Saudi Capital Market Authority (CMA) announced that foreigners can now invest in Saudi-listed companies that own real estate in Makkah and Madinah. The decision, effective immediately, is expected to enhance the competitiveness of the capital market and contribute to the country's broader economic diversification goals.
While foreign nationals have long been allowed to lease properties in Saudi Arabia, ownership, especially in the holy cities of Makkah and Madinah, has traditionally been limited to Saudi citizens. With the new regulations, foreign investors will be able to purchase shares or convertible debt instruments in listed companies, though their total ownership cannot exceed 49 percent of a company's total shares.
However, the new rules place a restriction on strategic foreign investors, who will not be allowed to acquire stakes in these companies. This move aligns Saudi Arabia with neighboring countries that have implemented similar reforms, allowing foreigners to own property in designated areas or free zones under specific conditions.
The CMA emphasized that this change is designed to stimulate investment, improve the efficiency and attractiveness of the capital market, and bolster both regional and international competitiveness, ultimately supporting Saudi Arabia's local economy.
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