Riyadh: In a major decision taken to stimulate growth, Saudi Arabia has allowed foreigners and non-Saudi citizens to invest in Makkah and Madinah.
Makkah al Mukarramah and Madinah Munawwarah are the Two Holiest Cities for Muslims across the world.
While the significance of Makkah lies in the fact that the Grand Mosque in the Holy City hosts Kaaba – the House of Allah, The Almighty, Madina is the City of Prophet Muhammad (peace be upon him).
Prophet Muhammad (PBUH) was born in Makkah but migrated to Madinah where he lived till he passed away at the age of 63.
Foreigners and non-Saudi national were barred from investing in the Real Estate business in the Two Holy Cities.
The latest order by the Saudi Capital Market Authority (CMA) has opened the doors for foreign investment in Makkah and Madinah.
The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis, according to Saudi Gazette.
In a statement released Monday the Saudi capital market regulator said that this move is aimed at stimulating investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy.
"This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects," the statement pointed out.
The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation.
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