Saudi Arabia's Real Estate Investment Revolution in Mecca and Medina

Saudi Arabia's market regulator is opening listed companies owning real estate in Mecca and Medina to foreign investors. This initiative aligns with economic diversification under Vision 2030, aiming to increase pilgrimage numbers and reduce oil dependency. The move also enriches the kingdom's market liquidity and investor diversity.

The Saudi Arabian market regulator has announced a significant decision to permit foreign investment in listed firms that own real estate within the sacred cities of Mecca and Medina. This strategic move aims to attract international capital to boost revenue sources largely reliant on Islamic pilgrimages.

The Capital Market Authority (CMA) revealed that this policy is designed to draw foreign investments, enhancing liquidity for ongoing and forthcoming projects in these cities. It aligns with Saudi Arabia's Vision 2030, intending to host 30 million pilgrims annually and diversifying its economy beyond oil reliance.

Notably, the country's benchmark index showed a slight increase, bolstered by significant gains in companies such as Jabal Omar Development Company and Makkah Construction and Development Company. These developments illustrate the growing attractiveness of the Gulf's largest stock market to foreign investors.

(With inputs from agencies.)