Saudi Arabia Opens Makkah, Madinah Real Estate to Foreigners

Saudi Arabia has announced a policy shift allowing foreign investment in publicly-traded companies that own real estate in Mecca and Medina, Islam's holiest cities. This decision aims to enhance investment, boost capital market competitiveness, and support the local economy as part of the Kingdom's Vision 2030 economic diversification objectives. Foreign investment is limited to shares or convertible debt instruments, with non-Saudi ownership capped at 49%, and strategic foreign investors are excluded. This move aligns with Saudi Arabia's broader efforts to attract foreign capital, increase liquidity for development projects, and reduce dependency on oil revenue, with plans to increase pilgrim numbers to 30 million annually by 2030. The change reflects ongoing reforms in the region, similar to those in neighboring countries allowing foreign property ownership under specific conditions.