The Saudi Capital Market Authority disclosed an important step today, Monday, that opens the door for foreign investors to invest in listed companies that own real estate in the holy cities of Mecca and Medina. This decision is part of the Kingdom's ongoing efforts to attract foreign investments and enhance economic diversity, in line with Saudi Vision 2030.
Conditions for Foreign Investment in Real Estate Companies According to the statement issued by the authority, foreign investors can now purchase shares and convertible debt instruments in listed companies on the Saudi stock market, provided that these companies own real estate, whether public or private, within the boundaries of the holy cities.
The Capital Market Authority confirmed that this exception is limited to strategic foreign investors, noting that the foreign ownership limit in the listed company must not exceed 49% of the total shares of the company. This step aims to encourage long-term investments and enhance sustainable growth in the Saudi market.
Positive Impacts on Saudi Stock Markets These developments have positively reflected on the Saudi stock markets, especially in the real estate sector, where the share of Jabal Omar Development Company (TADAWUL: 4250) recorded a notable increase of 10%, equivalent to 2.35 riyals per share, to be traded at levels of 25.85 riyals in the Saudi stock exchange.
The share of Mecca Construction and Development Company (TADAWUL: 4100) also increased by 9.84%, amounting to 9.50 riyals per share, reaching 106.00 riyals in today’s trading. This increase reflects the great optimism in the Saudi real estate sector following the announcement of allowing foreign investment.
