RIYADH: Saudi Arabia has announced a significant policy shift, permitting foreign property investment in real estate firms operating in Mecca and Medina. The move, aimed at attracting international capital, is part of the Kingdom’s Vision 2030 initiative to diversify its economy beyond oil.
The Capital Market Authority (CMA) confirmed that foreign property investors can now own shares in companies whose revenues depend on the Islamic pilgrimages of Haj and Umrah. However, non-Saudi nationals will be limited to owning no more than 49% of these firms’ shares.
Mecca and Medina are central to Islamic faith, hosting millions of pilgrims annually. In 2019, pilgrimage-related activities generated an estimated $12 billion, making it a key contributor to the Kingdom’s economy. Saudi Arabia now aims to increase annual pilgrim numbers to 30 million by 2030, further boosting revenues.
The CMA stated that the decision would enhance liquidity and attract foreign funds for present and future development projects in the two cities. This policy is expected to support ongoing infrastructure and hospitality expansions, catering to the growing number of pilgrims.
The initiative aligns with Saudi Arabia’s broader Vision 2030 goals, focusing on economic diversification, sustainable development, and increased foreign investment. By opening its doors to international investors, the Kingdom seeks to ensure long-term economic growth while maintaining its cultural and religious heritage.
While the policy marks a significant step, it ensures that foreign property ownership remains capped, protecting the Kingdom’s interests while encouraging global participation.