CMA allows subscriptions of non-Saudis to real estate funds investing in Makkah, Madinah

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Saudi Arabia's Capital Market Authority (CMA) gave the go-ahead for subscriptions of non-Saudis in real estate funds investing wholly or partly in Makkah and Madinah.

In a statement, the market regulator stressed that the financial institutions should adhere to the system of allowing non-Saudis to own and invest in real estate funds, when they manage such funds that invest in properties located in Makkah and Madinah, or when liquidating such funds.

The decision will contribute to relying on the financial market as a diversified financing channel, as well as strengthening the pillars of Vision 2030, which aims to make the Saudi financial market attractive to local and foreign investments and be able to play a pivotal role in developing the economy and diversifying its sources of income.

The CMA further said that it counts on activating the role of investment funds as a financing tool, and this is part of its strategic plan.

The regulator hopes that the funds will contribute to financing several vital economic activities, such as the real estate and financial sector, as well as the small and medium-sized enterprises (SMEs), in addition to other activities such as refinancing.