Saudi allows foreigners to invest in firms with property in Makkah, Madinah

Saudi Arabia’s market regulator said today it would allow foreign investment in listed companies that own real estate within Islam’s two holiest sites of Makkah and Madinah, as the Gulf country looks to attract more investment, Reuters reports.

The move will allow foreigners to invest in firms whose revenues rely on the Islamic pilgrimage, one of the top revenue sources for the oil-rich kingdom.

Saudi Arabia’s market watchdog, the Capital Market Authority (CMA), said in a statement the move aimed to attract foreign capital and provide liquidity for present and future projects in the two cities.

Saudi Arabia has said it aims to welcome 30 million pilgrims for Hajj and the year-round pilgrimage umrah annually by 2030. In 2019, it earned about $12 billion from the two pilgrimages, according to official data.

The annual pilgrimage plays a vital role in the country’s economy and upping the number of pilgrims is an integral part of its Vision 2030 economic reform agenda that aims to wean the economy off oil revenues.

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