Blog Post.

How Foreigners Can Now Invest in Makkah and Madinah Real Estate

Invest in Makkah and Madinah

Saudi Real Estate Revolution: Foreign Investment in Makkah and Madinah Real Estate

In a historic development, the Saudi Capital Market Authority (CMA) has opened doors for foreign investors to own shares in companies listed on the Saudi stock market that hold real estate in Makkah and Madinah. This decision is a part of the Kingdom’s broader Vision 2030 strategy aimed at economic diversification and strengthening global investment appeal.

A Game-Changing Move

Previously, ownership of real estate in the holy cities was restricted primarily to Saudi nationals, with foreigners only allowed to lease properties. This new regulation now permits foreigners to invest in listed companies through shares or convertible debt instruments. While this is a significant step forward, there are specific guidelines to ensure balance:

  • Foreign ownership is capped at 49% of a company’s shares.
  • Both individual and institutional investors are eligible.
  • Strategic foreign investors, however, are not allowed to hold stakes in these companies.

These changes reflect a regional shift as neighboring countries introduce policies to allow foreign ownership in select zones, boosting investor confidence.

If you’re considering investing in Saudi Arabia’s booming real estate sector, don’t miss our Essential Tips for Buying a Property in Saudi Arabia for expert guidance.

Enhancing Saudi Arabia’s Competitiveness

The CMA’s move aims to attract foreign direct investment (FDI) into the Kingdom’s real estate sector, particularly in Makkah and Madinah. These cities hold global significance, drawing millions of pilgrims annually, making them prime locations for development. By allowing foreign investment, Saudi Arabia is unlocking immense potential to fund critical projects in these holy cities.

This initiative is designed to:

  • Attract foreign capital.
  • Provide liquidity for large-scale developmental projects.
  • Position Saudi Arabia as a global investment hub.

To understand how Saudi Arabia’s economic landscape is evolving, read our detailed article on How Vision 2030 is Transforming Real Estate in Saudi Arabia.

Vision 2030 and Real Estate

Saudi Arabia’s Vision 2030 is a roadmap to reduce the Kingdom’s reliance on oil revenues and diversify its economy. Real estate plays a central role in this strategy, with the Kingdom targeting $100 billion in FDI by 2030. Recent reforms by the CMA are aligned with this vision, focusing on creating a more inclusive and attractive market for global investors.

Key reforms include:

  • Allowing foreign residents to invest directly in the stock market.
  • Enabling non-Saudi investors to access the market via swap agreements.
  • Permitting qualified foreign institutions to invest in listed securities.

These reforms are paving the way for a more dynamic, investor-friendly market. If you’re evaluating opportunities, check out Comparing Real Estate in Riyadh vs. Jeddah: Where Should You Invest? to identify the best options for your portfolio.

Immediate Impact on the Market

The CMA’s announcement has already boosted investor confidence. Share prices of real estate companies listed on the Saudi stock exchange saw significant growth:

  • Knowledge Economic City: Shares rose by 9.89% to SR16.66 ($4.44).
  • Jabal Omar Development Co.: Increased by 10%, closing at SR25.85.
  • Makkah Construction and Development Co.: Jumped 9.84% to SR106.

These numbers demonstrate the market’s optimism and the potential for lucrative returns in Saudi Arabia’s real estate sector. Learn more about investment prospects in our article on Return on Real Estate Investment in Saudi Arabia.

Global Relevance and Future Growth

Opening the holy cities to foreign investments doesn’t just benefit Saudi Arabia; it also creates new opportunities for global investors. With strategic initiatives in place, the Kingdom aims to:

  • Attract diverse investors from across the globe.
  • Bolster the real estate sector as a critical pillar of economic growth.
  • Ensure liquidity for transformative projects that enhance infrastructure and services in Makkah and Madinah.

To understand the cultural and historical importance of these cities, explore Makkah – Wikipedia and Madinah – Wikipedia for additional context.

Why This Matters for Investors

This landmark decision by the CMA is a win-win for investors and Saudi Arabia. It provides a unique opportunity for foreign investors to gain access to one of the world’s most revered real estate markets while supporting the Kingdom’s ambitious development goals. Whether you’re a seasoned investor or new to the market, Saudi Arabia offers unparalleled prospects for growth and profitability.

By embracing change and welcoming foreign investments, Saudi Arabia is setting the stage for a more inclusive and globally competitive economy—one that promises to be a game-changer for its real estate sector and beyond.

Interested in buying, selling, or just want to chat? Let’s connect!

Schedule Your Valuation

Your search for dream home and lucrative investment opportunities ends here.

Get in touch with our expert team. We’re dedicated to helping you through each phase of your real estate journey

Compare listings

Compare