The Government of Saudi Arabia has announced a groundbreaking decision to permit foreign investment in Saudi-listed companies that own real estate in the holy cities of Mecca and Medina.
This policy change, revealed by the kingdom’s Capital Market Authority (CMA) aimed at bolstering investment, enhancing the capital market’s competitiveness, and supporting the local economy.
According to the CMA, foreign investment in such companies will be limited to shares of Saudi-listed firms, convertible debt instruments, or both.
Saudi Arabian Man Arrested After Magdeburg Christmas Market Attack
Saudi Arabia Indicates Interest In Nigeria’s Steel Sector
However, the ownership stake for non-Saudis is capped at 49 percent, ensuring that majority control remains with Saudi nationals.
The decision is part of Saudi Arabia’s Vision 2030 initiative, which seeks to diversify the economy by reducing dependence on oil revenues and focusing on tourism and foreign investment.
Mecca, which currently receives millions of Muslim pilgrims annually for the Hajj and Umrah, is undergoing massive development as the kingdom aims to attract 30 million pilgrims by 2030.
One of the key projects contributing to this transformation is the Masar project, financed by Saudi Arabia’s Public Investment Fund, which envisions the addition of 40,000 new hotel rooms and enhanced infrastructure to cater to the growing number of pilgrims.
In 2019 alone, the Hajj and Umrah pilgrimages generated an estimated $12 billion in revenue, highlighting the economic significance of religious tourism.
