Latest news with #Non-Saudis
CairoScene
08-05-2025
- Business
- CairoScene
Saudi Banks Issue USD 2.37 Billion in Home Loans in February
Mortgage demand grows among Saudis and expats as Riyadh unlocks land and eases restrictions amid housing market shifts. Saudi banks issued SAR 8.91 billion (USD 2.37 billion) in residential mortgages to individuals in February 2025, according to data released by the Saudi Central Bank (SAMA). The figure represents a 28.3% increase compared to the same month last year, signalling renewed momentum in the Kingdom's housing market. Apartments saw the sharpest growth among property types, with lending in this category rising 46.5% year-on-year to SAR 2.9 billion. However, standalone houses continued to dominate overall mortgage volume, accounting for 62.6% of the total — roughly SAR 5.57 billion. Financing for residential land remained comparatively limited at SAR 436 million. The shift toward apartment ownership comes amid rising property prices in key cities like Riyadh, where demand for more affordable housing options continues to grow. In response, Saudi authorities have taken steps to expand land availability and ease barriers to homeownership. In March, the Royal Commission for Riyadh City announced the release of 81.5 square kilometres of land in the north of the capital for residential and commercial development. Under the plan, plots will be offered to Saudi citizens aged 25 and above at capped prices, aiming to increase supply and manage affordability. While the mortgage sector remains primarily geared towards Saudi nationals, ongoing reforms are reshaping the landscape for foreign buyers. Non-Saudis can now purchase property in approved zones such as NEOM and the Red Sea Project, with 99-year lease options available. However, most mortgage activity still flows through domestic initiatives like the Sakani programme, which continues to support citizens in securing home loans.
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.
