The Saudi Arabian government has announced a major shift in its economic policies to allow non-Saudis to invest in listed companies that own real estate in the holy cities of Mecca and Medina.
The Saudi Gazette reported that Mohammed Elkuwaiz, board chairman of the Saudi Capital Market Authority, announced the policy change during the Real Estate Future Forum in the capital city of Riyadh on Monday. Elkuwaiz stated this policy shift will enable his country’s real estate sector to benefit from different types of financing in the capital market.
The authority has been working to diversify financing products in the Saudi capital market by developing a debt market, real estate contributions, and other developments in the funds sector. The volume of assets managed in the real estate funds sector reached roughly $45 billion by the end of the third quarter of 2023, accounting for one-third of the assets managed in the financial market.
Photo of Medina’s Al-Masjid al-Nabawi by Bluemangoa2z / Wikimedia Commons
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