Saudi Arabia’s Capital Market Authority (CMA) has allowed financial market institutions to accept subscriptions of non-Saudis in real estate funds that invest in assets within Makkah and Madinah, according to a statement by the CMA.
The CMA stressed that financial institutions must ensure compliance with the Law of Real Estate Ownership and Investment by non-Saudis when managing the investments of investment funds in real estate located within the boundaries of the cities of Makkah and Madinah and upon liquidation of those funds, said a Saudi Press Agency report.
The authority indicated that the decision will contribute to enhancing the role of the capital market as a diversified financing channel, as well as strengthening the pillars of the Kingdom’s Vision 2030, which aims to make the Saudi capital market attractive to local and foreign investment and be able to play a pivotal role in developing the economy and diversifying its sources of income.
The CMA’s move aims to activate the role of investment funds as a tool for financing within its strategic plan. It also hopes that the funds would contribute to financing many vital activities in the economy, such as the real estate and financial sector and the sector of small and medium companies, in addition to other activities such as refinancing businesses.
The Saudi real estate sector is witnessing a boom as several megaprojects are underway in the Kingdom in line with Vision 2030. The Kingdom’s real estate sector is a key and effective economic driver for the country’s gross domestic product and is connected to at least 120 industries. The government is offering several incentives to foreign investors willing to work in the Saudi market and contribute to the growth of the real estate sector and the overall economy of the Kingdom.