Saudi Arabia News

Saudi Arabia Opens Mecca and Medina Real Estate to Foreigners

Emirates opens investment opportunities for non-Saudis in Mecca and Medina's real estate sector

Saudi Arabia Opens Mecca and Medina Real Estate Market to Foreign Investors

Saudi Arabia is set to allow non-Saudis to invest in publicly traded companies that own real estate in Mecca and Medina.

According to a report by the Capital Markets Authority, foreigners will be allowed to buy shares and convertible debt instruments in companies that own private or public real estate in the holy cities from Monday.

This is despite an ongoing restriction on non-Muslims directly owning property in the cities, which are regarded by many as reliable, stable investment opportunities.

Mecca and Medina are Muslim pilgrimage hubs, with millions of people flocking to do the Hajj and Umrah pilgrimages, generating consistent revenue for hotels and other services.

Despite enormous international and domestic investment, Saudi Arabia continues to rely on oil income to power its economic change.

According to the International Monetary Fund, Saudi Arabia requires an oil price of $96 per barrel to balance its budget, which is roughly $20 higher than current levels.

The kingdom has shifted its overseas spending to the domestic market.

For example, in 2024, Mubadala of the United Arab Emirates surpassed Saudi Arabia’s Public Investment Fund (PIF) to become the world’s largest active sovereign wealth fund.

According to Global SWF, PIF spending will reduce 37% to $19.9 billion by 2024.

While Saudi Arabia has received less foreign direct investment in its projects, international investors have demonstrated a strong interest in Saudi debt.

Bloomberg reports that “investor bids for a $12 billion bond exceeded $30 billion,” and Saudi Arabia issued more than $17 billion in overseas bonds in 2024, ranking second only to Romania among emerging economies.

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