The Saudi Capital Market Authority has permitted financial market institutions to accept subscriptions from non-Saudis in real estate funds that invest a portion or all of their assets in properties located within the boundaries of the cities of Mecca and Medina. The authority emphasized to financial institutions the necessity of complying with the regulations concerning non-Saudis' ownership and investment in real estate when managing investments in real estate investment funds located within the boundaries of Mecca and Medina or when liquidating those funds.
The authority noted that this decision will contribute to relying on the financial market as a diverse funding channel and enhance the foundations of Saudi Vision 2030, which aims to make the Saudi financial market attractive for both local and foreign investments, capable of playing a pivotal role in economic development and diversifying its income sources. The Saudi Capital Market Authority anticipates activating the role of investment funds as a financing tool within its strategic plan and hopes that these funds will contribute to financing many vital economic activities, such as real estate, financing, and small and medium enterprises, in addition to other activities like refinancing operations.
