4 advantages for investing foreigners in the shares of real estate companies in Makkah and the city

Specialists have set 4 advantages of the decision of the Capital Market Authority to allow foreigners to invest in the shares of the company that operates in Makkah and Madinah.
The specialists told Al -Youm: The decision contributes to attracting direct, supports the real estate and construction sector, provides job opportunities, and revives the tourism sector.

Economic reforms

They added that the decision is a step within a series of economic reforms that aim to achieve the Saudi Vision 2030, which seeks to diversify the economy and reduce dependence on oil.
Experts pointed out that the decision is a fundamental change in the traditional investment policy that was limited to citizens or residents.

Strategic transformation

The economic advisor, d. Hussein Al -Attas: Allowing foreigners to invest in the shares of listed real estate companies operating in Mecca and Medina represents a strategic transformation that enhances the attractiveness of the Saudi real estate market.
He added that the decision opens the way for the flow of new foreign investments, which increases liquidity in the sector and stimulates the growth of listed real estate companies.

He pointed out that the decision reflects the confidence in the economic and organizational stability in the Kingdom, expecting that this decision will contribute to improving the levels of competitiveness, expanding the base of investors, and increasing the demand for real estate projects in these two sacred regions, in order to support the achievement of the goals of Vision 2030 in diversifying the economy and attracting foreign investment.

Real estate developers

The real estate expert, Khaled Al -Mobaideen, said that the decision has a positive role that is directly reflected in the companies of real estate developers who have boxes in the development of the regions of Makkah and Madinah.
He pointed out that the companies that were operating in the two regions were limited only to citizens, pointing out that allowing foreigners to own units in investment funds enhance the projects of those companies, and raise demand and development on the regions of Makkah Al -Mukarramah and Al -Madinah Al -Munawwarah.

He added that the decision is a fundamental change in the traditional investment policy that was limited to citizens or residents according to strict controls.
He stated that the decision only includes investing in listed real estate companies, which ensures adherence to Saudi regulations and regulations, and limits unorganized speculation.
He pointed out that the decision enhances the transparency of the real estate market in the region, as the companies listed will adhere to the criteria of financial and administrative disclosure, while it will enhance foreign capital flows to the Saudi market, which contributes to supporting the economy and diversifying the sources of income.
And note that with the entry of foreign investors, it is expected that the value of the real estate market will increase gradually, which leads to stimulating economic activity in addition to the fact that the investment of foreigners in the shares of real estate companies will stimulate companies to implement larger and faster development projects.

Foreigners investment

The Capital Market Authority announced today, Monday, to allow foreigners to invest in Saudi companies listed in the Saudi financial market that possess permanent or temporary real estate within the borders of the cities of Makkah Al -Mukarramah and Al -Madinah Al -Munawwara Saudi finance is from the meaning of the phrase (non -Saudi) according to a system of non -Saudi ownership of the property and its investment.
Through this declaration, the authority aims to stimulate investment, raise the attractiveness and efficiency of the financial market, enhance its competitiveness regionally and internationally and support the local economy, by attracting foreign capital, in addition to providing the necessary amount of liquidity for projects in Makkah and Madinah, whether existing or future through Investment products available in the Saudi market are funded for these specific development projects.
According to the approved controls, foreign investment in real estate companies within the borders of the cities of Makkah and Medina will be limited to the shares of those Saudi companies listed in the Saudi financial market or the debt tools that are transferred to shares or both, provided that the ownership of persons with a natural and legal character who does not have citizenship does not exceed citizenship Saudi Arabia combined (49%) of the company’s shares, with the exception of the foreign strategic investor who is never entitled to ownership in the shares or the transfer of the company that can be transferred to the company.
The regulations approved for non -Saudi investors provide the ability to benefit from the economic benefits of existing and expected projects without prejudice to the relevant regulations, regulations and instructions, especially the system of non -Saudi ownership of the property and its investment, whether when the companies listed for their activities or when liquidated.
At the same time, the commission gave, according to the approved controls, the Saudi companies listed to acquire the right of ownership, the right to easement, or use the real estate allocated to its headquarters, or the headquarters of its branches, within the borders of the cities of Makkah and Medina, provided that the real estate is completely exploited for this purpose, according to the exceptions of the system Owning non -Saudis for the property.
It is noteworthy that the Capital Market Authority has made and still many efforts and measures to raise the attractiveness of the Saudi financial market and enhance the entry of the foreign investor directly or indirectly, starting to allow foreign investors residing to invest in the Saudi stock market directly, and allow foreign investors to enter the Saudi stock market for The path of swap agreements, allowing qualified investors from foreign financial institutions to invest in listed securities, allowing foreign strategic investors to own strategic shares in listed companies, and allow foreign investors to invest in debt tools, which indicates the completion and diversity of the financial financial market system and the available financial market options available for projects in Mecca Al -Mukarramah and Al -Madinah Al -Munawwarah.
In 2021 AD, the Capital Market Authority allowed non -Saudis contributions in the real estate funds invested within the borders of the cities of Makkah Al -Mukarramah and Al -Madinah Al -Munawwara .
The adoption of these controls comes after the authority surveyed public opinions on November 15 of 2023 AD, regarding “controls for foreign investors to shares of Saudi listed companies that have investment real estate in Mecca and the city” through the unified electronic platform to explore public opinions and government agencies of the National Competitiveness Center (reconnaissance platform) And the authority’s website before it is issued in its final form.