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The Saudi Capital Market Authority (CMA) on Monday announced that foreigners can invest in Saudi-listed companies that own real estate in Makkah and Madinah. The decision is expected to increase avenues for the sector to secure financing.
Companies operating there include Jabal Omar Development Co., Makkah Construction & Development Co. and Taiba Holding Co. Their shares have soared up to 10% on Tadawul following the news on Monday.
"The CMA announcement is a positive news for the listed real estate companies operating in Makkah and Madinah due to the potential for investment funds flows that can be triggered. The companies operating in the space, including Jabal Omar Development Co., Makkah Construction & Development Co., Taiba Holding Co., and Economic Knowledge City are expected to benefit” said Sultan Altowaim, Head of Research at Riyadh-based AlRajhi Capital.
“The CMA aims to stimulate investment and enhance the attractiveness of the capital market, while supporting the domestic economy and Vision 2030 objectives. This will help in attracting necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, which is a key funding source for development projects,” he added.
The CMA said the move is aimed at attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah “through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects”.
In 2021, the regulatory authority allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah.
(Reporting by Brinda Darasha; editing by Seban Scaria)
