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Non-Saudis can now invest in real estate in Makkah, Medina

Muslim pilgrims pray near the Prophet Muhammad mosque on January 19, 2006 in the holy city of Medina, Saudi Arabia [Muhannad Fala?ah/Getty Images]
Muslim pilgrims pray near the Prophet Muhammad mosque on January 19, 2006 in the holy city of Medina, Saudi Arabia [Muhannad Fala?ah/Getty Images]

Saudi Arabia's Capital Market Authority (CMA) on Monday allowed market institutions to accept subscriptions from non-Saudis in the real estate funds that invest in assets within the boundaries of Makkah and Medina, the official Saudi Press Agency (SPA) reported.

"CMA stressed that the capital market institutions must ensure compliance with the Law of Real Estate Ownership and Investment by Non-Saudis when managing the investments," SPA reported.

CMA explained that the decision will contribute to relying on the capital market as a diversified financing channel which is in line with the government initiative Vision 2030, which aims to make the Saudi capital market attractive to local and foreign investment and diversify the kingdom's sources of income.

In June 2015, Saudi Arabia allowed international investors to buy local shares directly, in a bid to attract more foreign capital and reduce its dependence on oil revenues.

The kingdom is seeking to attract $500 billion in investments to build its future model city, NEOM, the main pillar of Vision 2030.

READ: Middle East Green Initiative to invest $10bn, Saudi Crown Prince says

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Middle EastNewsSaudi Arabia
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