In a major shift that signals Saudi Arabia’s commitment to economic diversification, the kingdom’s market regulator announced on Monday that foreign investors will now be permitted to invest in publicly listed companies that own real estate in Mecca and Medina, the two holiest cities in Islam. This historic move marks a significant step in the country’s efforts to attract global capital and reduce its reliance on oil revenue.
The decision allows international investors to gain exposure to a sector that generates substantial income from the millions of Muslims who visit the cities for Hajj and year-round religious pilgrimages. With both cities serving as major hubs for religious tourism, companies that own hospitality and real estate assets in the region have become vital players in the country’s economy. By opening this market to foreign investment, Saudi Arabia aims to capitalize on the continued growth in religious tourism and related industries.
The Saudi Capital Market Authority (CMA) explained that the initiative was designed to enhance liquidity and inject foreign capital into the economy, benefiting both ongoing and future projects in Mecca and Medina. The CMA emphasized that this move aligns with the kingdom’s Vision 2030 plan, which seeks to modernize the country’s economy, foster innovation, and attract international investment across various sectors beyond oil.
This shift is expected to bring new opportunities for foreign investors to tap into one of the most profitable sectors in Saudi Arabia, with the pilgrimage contributing significantly to the country’s revenue. With millions of visitors arriving each year, the real estate market in Mecca and Medina remains one of the most attractive prospects for global investors looking to gain exposure to the kingdom’s growing economy.
The policy change comes as part of broader efforts by Saudi Arabia to create a more diversified and sustainable economic future, including expanding the role of non-oil industries. As the kingdom continues to evolve and open up new avenues for investment, the move is expected to draw significant interest from foreign investors eager to participate in the booming religious tourism sector and the broader development of Saudi Arabia’s economy.
By leveraging its status as the home of Islam’s holiest sites, Saudi Arabia is positioning itself as a hub for international capital, tapping into a rapidly growing market that extends far beyond its oil reserves.
