{"id":73995,"date":"2025-01-30T17:56:14","date_gmt":"2025-01-30T14:56:14","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=73995"},"modified":"2025-11-25T23:47:10","modified_gmt":"2025-11-25T23:47:10","slug":"%d9%83%d9%8a%d9%81-%d9%8a%d8%b9%d8%b2%d8%b2-%d8%a7%d9%84%d8%b3%d9%85%d8%a7%d8%ad-%d8%a8%d8%aa%d9%85%d9%84%d9%83-%d8%a7%d9%84%d8%a3%d8%ac%d8%a7%d9%86%d8%a8-%d9%84%d8%a3%d8%b3%d9%87%d9%85-%d8%a7%d9%84","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/73995\/","title":{"rendered":"How does allowing foreign ownership of shares in real estate companies in Makkah and Madinah boost the real estate sector?"},"content":{"rendered":"<p>In a new move that reflects the Kingdom's economic trends towards enhancing investment attractiveness, the Capital Market Authority (CMA) has allowed foreigners to own shares of real estate companies that invest in Mecca and Medina, after real estate investment in the two holy cities was limited to citizens and local companies. This decision marks a turning point in the real estate market, as it opens the door to the influx of foreign capital, and raises questions about its implications on<a href=\"https:\/\/amlak.net.sa\/en\/73952\/\"><strong> Real estate sector<\/strong><\/a>whether in terms of prices, demand levels, or even the nature of future projects.<\/p>\n<h4><span style=\"color: #800000;\">The CMA decision and its impact on the real estate sector in Makkah and Madinah<\/span><\/h4>\n<p>The Capital Market Authority's decision to allow foreigners to own shares of real estate companies that invest in Mecca and Medina is a step in line with the objectives of Saudi Vision 2030 to attract foreign investments and enhance the contribution of the private sector to the national economy. This decision comes after previous amendments that allowed foreigners to own real estate in the Kingdom except for the two holy cities, but opening the way to own shares of real estate companies represents a qualitative shift that may reshape the real estate market scene in them.<\/p>\n<h4><span style=\"color: #800000;\">How is the influx of foreign investment boosting the growth of the real estate market?<\/span><\/h4>\n<p>Real estate investment in Makkah and Madinah has always been driven by strong local demand, especially in sectors related to Hajj and Umrah. With foreigners allowed to own shares in real estate companies, the flow of foreign investment is expected to increase, which could accelerate the pace of development of residential, hotel and commercial projects. It may also provide the additional funding that real estate companies need to implement large-scale projects to keep pace with the growing demand for real estate in the two cities.<\/p>\n<h4><span style=\"color: #800000;\">Opportunities and Challenges for Real Estate Companies<\/span><\/h4>\n<p>The decision will open new horizons for real estate companies to attract foreign investors, which could help them improve their solvency and diversify their funding sources. It may also stimulate innovation in the real estate sector, whether in terms of developing modern designs that meet the needs of international investors, or promoting sustainability and quality standards in projects.<\/p>\n<p>On the other hand, the market may face some challenges, such as the possibility of higher prices as a result of increased investment demand, which may affect the purchasing power of citizens. In addition, the new investment environment may require more regulations to ensure market balance and protect the rights of all parties.<\/p>\n<h4><span style=\"color: #800000;\">Implications of the decision on real estate prices and demand levels<\/span><\/h4>\n<p>The influx of foreign investment is likely to lead to a surge in demand for real estate in Makkah and Madinah, especially in areas close to the Makkah Mosque and the Prophet's Mosque, which could be reflected in prices. However, the actual impact will depend on several factors, such as the size of the investment flows, the nature of the new projects that will be developed, and how real estate companies respond to this new openness.<\/p>\n<h4><span style=\"color: #800000;\">The role of the private sector in attracting foreign capital<\/span><\/h4>\n<p>This decision places a great responsibility on real estate companies in Makkah and Madinah to attract foreign investors, as they have to offer attractive projects that comply with global investment standards, and promote transparency and financial disclosure to reassure new investors. Partnerships between local and foreign companies may also contribute to enhancing the transfer of expertise and developing the sector according to international best practices.<\/p>\n<h4><span style=\"color: #800000;\">Experts on the future of real estate investment in the two holy cities<\/span><\/h4>\n<p>Economists believe that allowing foreign ownership of shares in real estate companies in Mecca and Medina could be a positive step towards developing<a href=\"https:\/\/amlak.net.sa\/en\/73950\/\"><strong> Real estate sector<\/strong><\/a> They emphasize the importance of monitoring the effects of the decision on the market to ensure a balance between foreign investments and the national interest.<\/p>\n<p>In the end, the most important question remains: Will this move contribute to boosting real estate investments and achieving a qualitative leap in projects in Mecca and Medina, or will there be challenges that may hinder the achievement of the desired goals? The coming days will reveal the success of this new policy in redrawing the map of real estate investment in the two holy cities.<\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">Minutes<\/span><\/span>\u0641\u064a \u062e\u0637\u0648\u0629 \u062c\u062f\u064a\u062f\u0629 \u062a\u0639\u0643\u0633 \u0627\u0644\u062a\u0648\u062c\u0647\u0627\u062a \u0627\u0644\u0627\u0642\u062a\u0635\u0627\u062f\u064a\u0629 \u0644\u0644\u0645\u0645\u0644\u0643\u0629 \u0646\u062d\u0648 \u062a\u0639\u0632\u064a\u0632 \u062c\u0627\u0630\u0628\u064a\u0629 \u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631\u060c \u0633\u0645\u062d\u062a \u0647\u064a\u0626\u0629 \u0627\u0644\u0633\u0648\u0642 \u0627\u0644\u0645\u0627\u0644\u064a\u0629 \u0644\u0644\u0623\u062c\u0627\u0646\u0628 \u0628\u062a\u0645\u0644\u0643 \u0623\u0633\u0647\u0645 \u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629 \u0627\u0644\u062a\u064a \u062a\u0633\u062a\u062b\u0645\u0631 \u0641\u064a \u0645\u0643\u0629 \u0627\u0644\u0645\u0643\u0631\u0645\u0629 \u0648\u0627\u0644\u0645\u062f\u064a\u0646\u0629 \u0627\u0644\u0645\u0646\u0648\u0631\u0629\u060c \u0628\u0639\u062f \u0623\u0646 \u0643\u0627\u0646 \u0627\u0644\u0627\u0633\u062a\u062b\u0645\u0627\u0631 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u0641\u064a \u0627\u0644\u0645\u062f\u064a\u0646\u062a\u064a\u0646 \u0627\u0644\u0645\u0642\u062f\u0633\u062a\u064a\u0646 \u0645\u0642\u0635\u0648\u0631\u064b\u0627 \u0639\u0644\u0649 \u0627\u0644\u0645\u0648\u0627\u0637\u0646\u064a\u0646 \u0648\u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0645\u062d\u0644\u064a\u0629. \u0647\u0630\u0627 \u0627\u0644\u0642\u0631\u0627\u0631 \u064a\u0634\u0643\u0644 \u0646\u0642\u0637\u0629 \u062a\u062d\u0648\u0644 \u0641\u064a \u0627\u0644\u0633\u0648\u0642 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629\u060c \u0625\u0630 \u064a\u0641\u062a\u062d \u0627\u0644\u0628\u0627\u0628 \u0623\u0645\u0627\u0645 \u062a\u062f\u0641\u0642 \u0631\u0624\u0648\u0633 \u0627\u0644\u0623\u0645\u0648\u0627\u0644 &#8230; <a title=\"How does allowing foreign ownership of shares in real estate companies in Makkah and Madinah boost the real estate sector?\" class=\"read-more\" href=\"https:\/\/amlak.net.sa\/en\/73995\/\" aria-label=\"Read more about \u0643\u064a\u0641 \u064a\u0639\u0632\u0632 \u0627\u0644\u0633\u0645\u0627\u062d \u0628\u062a\u0645\u0644\u0643 \u0627\u0644\u0623\u062c\u0627\u0646\u0628 \u0644\u0623\u0633\u0647\u0645 \u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629 \u0641\u064a \u0645\u0643\u0629 \u0648\u0627\u0644\u0645\u062f\u064a\u0646\u0629 \u0627\u0644\u0642\u0637\u0627\u0639 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u061f\">Read 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