The Capital Market Authority has emphasized to financial institutions the need to comply with the regulations Non-Saudi Ownership of real estate and investment regulations when managing investments in real estate funds located within the boundaries of the cities of Makkah and Madinah, or when liquidating such funds.

The Authority noted that the decision will contribute to relying on 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 financial market attractive to domestic and foreign investment and capable of playing a pivotal role in economic development and the diversification of its revenue sources.

The Capital Market Authority is counting on activating the role of investment funds as a financing tool within its strategic plan. The Authority hopes that these funds will contribute to financing many vital economic activities, such as the real estate and finance sectors and the small and medium-sized enterprise (SME) sector, in addition to other activities such as refinancing.

A number of investors and professionals in the real estate sector have affirmed that this decision is a positive step that will help create greater incentives and attract investors to this type of investment, while providing them with more options, a move that does not conflict with the regulations governing non-Saudis’ ownership of and investment in real estate within the boundaries of Makkah and Madinah.