The Saudi Capital Market Authority (CMA) has announced a significant policy change allowing foreign investors to invest in listed Saudi companies that own real estate in the holy cities of Makkah and Madinah.

Effective from 27 January 2025, this move is designed to boost investment, enhance the capital market’s appeal, and strengthen its competitiveness on both regional and international levels, while supporting the local economy.

The CMA’s decision follows the approval of regulations that exclude certain companies from the definition of “Non-Saudi” under the Law of Real Estate Ownership and Investment by Non-Saudis.

Foreign investments will be limited to shares and convertible debt instruments of these companies, with a cap of 49% ownership for non-Saudis.

Strategic foreign investors are exempt from owning shares or convertible debt instruments.

This initiative allows non-Saudi investors to tap into the economic benefits of projects in Makkah and Madinah without breaching existing laws.

Additionally, Saudi-listed companies can acquire property rights for their headquarters or branches in these cities, provided they comply with specific regulations.

The CMA has been actively working to make the Saudi capital market more attractive to foreign investors, aligning with the goals of Saudi Vision 2030.

This includes previous measures like allowing foreign residents to invest directly in the stock market and enabling foreign strategic investors to acquire stakes in listed companies.

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