RIYADH: After a historic ruling by the Saudi Capital Market Authority, foreigners can now invest in Saudi-listed businesses that own real estate in Makkah and Madinah. The CMA said in a press release that the action, which takes effect immediately, will increase the competitiveness of the capital market and support the Kingdom’s Vision 2030 goals for economic diversification. Although foreigners are permitted to lease homes in the holy cities, ownership is typically restricted to Saudi residents, and non-Saudis are permitted to own real estate in the Kingdom, subject to certain restrictions.
Foreign investments are restricted to listed firms’ shares or convertible debt instruments under the new criteria. A company’s total non-Saudi ownership, including that of individuals and legal entities, is limited to 49% of its shares. Strategic foreign investors, however, are not allowed to own stock in these businesses.
The action coincides with regional reforms, since the majority of neighbouring nations let foreigners to purchase real estate, mostly in free zones or other regions with specific limits. “By making this announcement, the Capital Market Authority hopes to boost investment, improve the capital market’s efficiency and appeal, and increase its competitiveness both domestically and globally while assisting the local economy,” the CMA stated.
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