Saudi Arabia Opens Holy Cities’ Real Estate Market to Foreign Investors

In a landmark economic reform, Saudi Arabia has officially opened the real estate market in Mecca and Medina to foreign investors through publicly traded companies. This move marks a significant shift in Saudi property laws, aligning with the country’s Vision 2030 strategy to diversify the economy and attract more foreign capital.

📈 A Major Shift in Saudi Real Estate Regulations

Previously, foreign investors were prohibited from owning real estate in the holy cities, although leasing for up to 99 years was permitted. However, under the new regulations introduced by the Capital Market Authority (CMA), non-Saudis can now invest in listed companies that own properties in Mecca and Medina.

Foreign investors can acquire:
✅ Shares in publicly traded companies managing real estate assets in the two cities.
✅ Convertible debt instruments, allowing them to participate in real estate investment indirectly.

However, direct ownership remains restricted, and foreign ownership is capped at 49%, ensuring Saudi control over strategic assets while still allowing foreign capital inflows.

🌍 Impact on the Saudi Real Estate Market

This policy aims to:

• Increase liquidity in the Saudi real estate sector.
• Enhance transparency and regulatory oversight by directing investments through publicly traded companies.
• Boost development projects in Mecca and Medina to accommodate growing demand, particularly from religious tourism.

With Saudi Arabia expecting 40 million pilgrims annually by 2030, real estate expansion in the holy cities is essential to meet housing, hospitality, and infrastructure needs.