Dubai (BureauReport)
The Saudi Capital Markets Authority has conditionally allowed non-Saudis to invest indirectly in the properties of Makkah and Madinah. Foreigners will not be allowed to buy property directly in Makkah and Madinah but will be able to invest in investment funds that will own or partially own the property in Makkah and Madinah. According to the state-run news agency SPA, the Capital Markets Authority has instructed financial institutions to invest in property investment funds in property in the cities of Makkah and Madinah. Restrict The same restriction will apply when investment funds investing in both cities are closing down.
The Capital Markets Authority says the new decision will boost the financial markets. A new way of relying on the financial market will open up as a means of diversifying funding. Thanks to this, the goals of Saudi Vision 2030, which aims to make the Saudi financial market more attractive to local and foreign investors, will be better achieved. The Capital Markets Authority has high expectations regarding the effective role of investment funds in this decision. The Authority hopes to play a significant role in activities such as investment funds, real estate funding, small and medium enterprises and refunds.
Al Ibrahim, head of the fund’s sector at Al-Awal Capital, said that many investors want to invest in properties in Makkah and Madinah. The new decision removes a major barrier to investment in the holy cities in front of foreigners residing in the country and abroad. He expressed the belief that the director of the fund would have all the powers regarding the leadership of the fund and investment in the fund. The decision is very clear. It also resolves the issue of property ownership of foreigners in case of termination of investment fund so that this decision does not clash with the decision of foreigners not to own property in Makkah and Madinah. If the fund is settled, then the foreign investor will have to pay in cash the value of the properties in the holy cities which the fund has purchased there, however the foreigners will not become the direct owners of these properties.
