Saudi Arabia Opens Foreign Property Investments in Holy Cities
- Non-Saudis can invest in firms with real estate in holy cities
- Some real-estate stocks jump on the news of the changes
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Saudi Arabia said it will begin allowing foreigners to invest in publicly-traded companies owning real estate in the holy cities of Makkah and Madinah for the first time as the kingdom looks to draw in more overseas investment.
Starting today, foreign investors can purchase shares and convertible debt instruments in firms listed on the Saudi stock exchange that own either public or private real estate within the boundaries of the cities, according to a statement from the Capital Market Authority. An exception applies to strategic foreign investors and foreign ownership cannot exceed 49% of a company’s listed shares, the CMA said.