Wednesday, November 10, 2021
Saudi Arabia Allows Expats (non-Saudis) to invest in Real estate funds in Makkah and Madina
The Capital Market Authority (CMA) in Saudi Arabia allowed the financial market institutions to accept the subscriptions of non-Saudis (Expatriates) in the real estate fund that invests partly or all of its assets in a real estate located within the boundaries of the cities of Makkah and Madinah.
The Authority highlighted to financial institutions the necessity of compliance to the provisions of non-Saudis owning and investing in real estate of investment funds within the boundaries of the cities of Makkah and Madinah, or when liquidating those funds, according to a statement issued.
- The authority explained that the decision will contribute to relying on the financial market as a diversified financing channel, as well as strengthening the pillars of the Saudi Vision 2030, which aims to make the Saudi financial market attractive to local and foreign investment and able to play a pivotal role in developing the economy and diversifying its sources of income. Most viewed : Expats can now make quarterly payments of dependent fee
- The Capital Market Authority is counting on activating the role of investment funds as a tool for financing within its strategic plan, and the Authority hopes that the funds will contribute to financing many vital activities in the economy, such as the real estate and financial sector and the sector of small and medium companies, in addition to other activities such as refinancing.
- Head of the Capital Markets Funds Sector at Alawwal Capital, Alaa Al Ibrahim, said that this decision will have positive results on real estate funds of all kinds. Read : Kuwait resumes issuance of all types of visas
- Many investors want to invest in real estate in Makkah and Madinah, and the decision removed a major barrier for resident expats in the Kingdom and those abroad to invest in them.
- He said that this decision is not considered a first step to allow expatriates to own real estate shares in real estate companies that target the two holy cities, "I do not think this is because the fund manager has all the powers and authority to direct investments in the fund and lead the fund."
- He indicated that the decision also highlights the issue of non-Saudi ownership of real estate in the event of the fund being liquidated, so that this decision does not conflict with the decision that expatriates do not own real estate in Makkah and Medina in kind. Follow Saudi Expatriates on Whatsapp
