Latest news with #Non-Saudi
Asharq Al-Awsat
28-01-2025
- Business
- Asharq Al-Awsat
Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows
Real estate experts have welcomed Saudi Arabia's decision to allow foreign investment in real estate companies in the Makkah and Madinah regions. They said it will attract more foreign capital, speed up major projects, and support development in these cities. The Saudi Capital Market Authority (CMA) said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. 'This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,' the statement added. The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis. The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. However, people without Saudi nationality would not be allowed to own more than 49% of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies. The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. Real estate expert Ahmed Al-Faqih told Asharq Al-Awsat that the decision will benefit the overall Saudi real estate market, especially in Makkah and Madinah. It will attract more foreign investment, supporting Saudi Vision 2030's goals of boosting investments and reducing reliance on oil. Al-Faqih expects the market to react positively, with more investors coming in. The decision's impact will go beyond buying and selling properties to include changes in regulations and market innovations. 'We'll see more capital flowing into the market, and development projects will transform the two cities into major construction hubs in the next five years, especially with their ongoing religious tourism during Hajj and Umrah,' said Al-Faqih. He added that the decision targets Muslims worldwide who want to invest in the holy cities, as well as other investors. 'This long-awaited move is a sign that Saudi Arabia is close to allowing foreign investment in its real estate sector,' he noted.
Gulf Insider
28-01-2025
- Business
- Gulf Insider
Saudi Arabia Allows Foreigners To Invest In Listed Companies Operating In Makkah And Madinah
The Saudi Capital Market Authority said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. The Saudi Capital Market Authority (CMA) has announced that foreigners are allowed to invest in listed Saudi companies that own real estate in the cities of Makkah and Madinah, effective from Monday, Jan. 27. The Saudi capital market regulator said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. 'This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,' the statement pointed out. The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. However, people without Saudi nationality would not be allowed to own more than 49 percent of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies. The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. It is noteworthy that the Capital Market Authority has undertaken, and continues to implement, numerous efforts and measures to enhance the attractiveness of the Saudi capital market and facilitate the entry of foreign investors, both directly and indirectly. These efforts include allowing foreign residents to directly invest in the Saudi stock market, enabling foreign investors to access the market through swap agreements, permitting qualified foreign capital institutions to invest in listed securities, allowing foreign strategic investors to acquire strategic stakes in listed companies, and enabling foreign investors to directly invest in debt instruments. These initiatives reflect the completeness and diversity of the capital market's funding options available for projects in Makkah and Madinah. In 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. This move contributed to the reliance on the capital market as a diverse financing channel and supported the objectives of Saudi Vision 2030, which aims to make the Saudi capital market attractive to both local and foreign investments. The approval of the controls came after the CMA published on 15 November 2023, the 'Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah' on the Public Consultation Platform 'Istitlaa,' affiliated with the National Competitiveness Center, and the CMA's website for public consultation for the purpose of approving the final text.
Arabian Business
27-01-2025
- Business
- Arabian Business
Saudi Arabia now allows foreign investment in listed real estate companies in Makkah and Madinah
Saudi Arabia now allows foreigners to invest in listed companies that own real estate in Makkah and Madinah. The Saudi Capital Market Authority (CMA) has announced that foreigners are allowed to invest in Saudi listed companies in the Saudi capital market that own real estate within the boundaries of the cities of Makkah and Madinah, starting from Monday, January 27. This follows the approval of the Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis. Saudi real estate investment rules for foreigners Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects. According to the approved controls, foreign investment in companies owning real estate within the boundaries of Makkah and Madinah will be limited to shares of these Saudi companies listed on the Saudi capital market, convertible debt instruments, or both. However, the ownership of natural and legal persons jointly who do not hold Saudi nationality shall not exceed 49 per cent of the company's shares. An exception applies to strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies. The approved Controls allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, according to the Controls, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilised for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. The Capital Market Authority has undertaken, and continues to implement, numerous efforts and measures to enhance the attractiveness of the Saudi capital market and facilitate the entry of foreign investors, both directly and indirectly. These efforts include: Allowing foreign residents to directly invest in the Saudi stock market Enabling foreign investors to access the market through swap agreements Permitting qualified foreign capital institutions to invest in listed securities Allowing foreign strategic investors to acquire strategic stakes in listed companies Enabling foreign investors to directly invest in debt instruments These initiatives reflect the completeness and diversity of the capital market's funding options available for projects in Makkah and Madinah. In 2021, the Capital Market Authority (CMA) allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. This move contributed to the reliance on the capital market as a diverse financing channel and supported the objectives of Saudi Vision 2030, which aims to make the Saudi capital market attractive to both local and foreign investments. The approval of the Controls came after the CMA published on November 15, 2023, the 'Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah' on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform 'Istitlaa'), affiliated with the National Competitiveness Canter (NCC), and the CMA's website for public consultation for the purpose of approving the final text.
Zawya
27-01-2025
- Business
- Zawya
CMA: Allowing Foreign Investment in real estate listed companies operating in Makkah and Madinah
The Saudi Capital Market Authority (CMA) has announced that foreigners are allowed to invest in Saudi listed companies in the Saudi capital market that own real estate within the boundaries of the cities of Makkah and Madinah, starting today. This follows the approval of the Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis. Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects. According to the approved controls, foreign investment in companies owning real estate within the boundaries of Makkah and Madinah will be limited to shares of these Saudi companies listed on the Saudi capital market, convertible debt instruments, or both. However, the ownership of natural and legal persons jointly who do not hold Saudi nationality shall not exceed 49% of the company's shares. An exception applies to strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies. The approved Controls allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation. At the same time, according to the Controls, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis. It is worth noting that the Capital Market Authority has undertaken, and continues to implement, numerous efforts and measures to enhance the attractiveness of the Saudi capital market and facilitate the entry of foreign investors, both directly and indirectly. These efforts include allowing foreign residents to directly invest in the Saudi stock market, enabling foreign investors to access the market through swap agreements, permitting qualified foreign capital institutions to invest in listed securities, allowing foreign strategic investors to acquire strategic stakes in listed companies, and enabling foreign investors to directly invest in debt instruments. These initiatives reflect the completeness and diversity of the capital market's funding options available for projects in Makkah and Madinah. In 2021, the Capital Market Authority (CMA) allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. This move contributed to the reliance on the capital market as a diverse financing channel and supported the objectives of Saudi Vision 2030, which aims to make the Saudi capital market attractive to both local and foreign investments. The approval of the Controls came after the CMA published on 15 November 2023, the 'Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform 'Istitlaa"), affiliated with the National Competitiveness Canter (NCC), and the CMA's website for public consultation for the purpose of approving the final text. The Controls for Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah can be viewed via the following link: Controls for the Exclusion of Companies Listed in the Saudi Stock Exchange (Tadawul) from the Meaning of the Phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis About CMA: The Capital Market Authority (CMA) in Saudi Arabia unofficially started in the early fifties, and continued to operate successfully, until the government set its basic regulations in the eighties. The current Capital Market Law is promulgated and pursuant to Royal Decree No. (M/30) dated 2/6/1424H, which formally brought it into existence. The CMA is a government organization applying full financial, legal, and administrative independence, and has direct links with the Prime Minister.
Saudi Gazette
27-01-2025
- Business
- Saudi Gazette
Saudi Arabia allows foreigners to invest in listed companies operating in Makkah and Madinah
Saudi Gazette report RIYADH — The Saudi Capital Market Authority (CMA) has announced that foreigners are allowed to invest in listed Saudi companies that own real estate in the cities of Makkah and Madinah, effective from Monday, Jan. 27. The Saudi capital market regulator said in a statement that this move aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy. "This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects," the statement pointed out. The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both. However, people without Saudi nationality would not be allowed to own more than 49 percent of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies. The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah. This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by is noteworthy that the Capital Market Authority has undertaken, and continues to implement, numerous efforts and measures to enhance the attractiveness of the Saudi capital market and facilitate the entry of foreign investors, both directly and indirectly. These efforts include allowing foreign residents to directly invest in the Saudi stock market, enabling foreign investors to access the market through swap agreements, permitting qualified foreign capital institutions to invest in listed securities, allowing foreign strategic investors to acquire strategic stakes in listed companies, and enabling foreign investors to directly invest in debt instruments. These initiatives reflect the completeness and diversity of the capital market's funding options available for projects in Makkah and 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. This move contributed to the reliance on the capital market as a diverse financing channel and supported the objectives of Saudi Vision 2030, which aims to make the Saudi capital market attractive to both local and foreign investments. The approval of the controls came after the CMA published on 15 November 2023, the 'Regulations of Foreign Investors' Ownership of Shares in Saudi Listed Companies that have Investment Properties in Makkah and Madinah" on the Public Consultation Platform 'Istitlaa," affiliated with the National Competitiveness Center, and the CMA's website for public consultation for the purpose of approving the final text.
