Edaa lifts restrictions on foreign investment in Makkah, Madinah developers

Tadawul trading screen 

The Securities Depository Center (Edaa) lifted the ownership restriction on foreign shareholders of companies covered by the Capital Market Authority’s (CMA) recent decision on foreign investments.

Edaa removed the restrictions within the Depository and Settlement System, it said in a statement.

The CMA earlier announced its decision to allow foreigners to invest in Saudi-listed companies that own real estate within Makkah and Madinah, starting from Jan. 27, Argaam reported.

For more news on listed companies

This followed approval of the Controls for the Exclusion of Companies Listed in the Saudi Exchange (Tadawul) from the Meaning of the Phrase (non-Saudi), in accordance with the Law of Real Estate Ownership and Investment by non-Saudis.

According to the approved controls, foreign investment in companies owning real estate within Makkah and Madinah will be limited to shares of Saudi-listed companies, convertible debt instruments of the company, 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.