Saudi Arabia has announced a policy change allowing foreign investments in listed companies with real estate holdings in Makkah and Medina, aiming to attract global capital and boost liquidity for projects in these holy cities.
The Capital Market Authority (CMA) stated the decision aligns with the Kingdom’s Vision 2030 goals to diversify the economy away from oil by leveraging pilgrimage revenues. The move will enable foreign investors to purchase shares or convertible debt instruments in such companies, though strategic foreign ownership remains restricted.
Foreign investors will be limited to a maximum of 49% ownership of these firms’ shares.
Key players like Jabal Omar Development Company and Makkah Construction and Development Company saw significant gains, with their shares surging 10%. Saudi Arabia’s benchmark index also witnessed an upward trend following the announcement.
The Kingdom plans to host 30 million Hajj and Umrah pilgrims annually by 2030, capitalizing on a sector that generated $12 billion in 2019. Expanding pilgrimage capacity forms a critical pillar of its economic reform agenda.
Since opening its bourse to foreign investors in 2015, Saudi Arabia’s stock market—valued at $2.72 trillion—has experienced increased activity, with this policy marking another step to attract international investments.