Effective January 27, 2025, the Saudi Capital Market Authority (the “CMA”) has approved foreign investment in listed companies that own real estate within Makkah and Madinah. This significant move aligns with the Kingdom's goals to:
- Attract foreign capital.
- Enhance the capital market's competitiveness.
- Provide necessary liquidity for current and future projects in the holy cities.
Key Highlights of the New Regulations:
- Foreign ownership is limited to shares or convertible debt instruments.
- Total foreign ownership is capped at 49% of a company's shares.
- Strategic foreign investors are excluded from ownership.
This initiative aims to finance developmental projects in Makkah and Madinah while ensuring compliance with the Law of Real Estate Ownership and Investment by Non-Saudis, following the approval of the Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the definition of the Phrase (Non-Saudi) in accordance with the Law.
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