Saudi Allows Non-Saudis To Invest In Real Estate Funds At Makkah,Madinah

RIYADH: The Capital Market Authority (CMA) allowed the financial market institutions to accept the subscriptions of non-Saudis in the real estate funds that invests in assets within the boundaries of Makkah and Madinah, according to a released statement by CMA.

The ownership system for non-Saudis in the Kingdom stipulates that non-Saudis are allowed to own real estate for their own residence, after obtaining a license from the Ministry of Interior, and for foreign representations to own their official headquarters on the condition of obtaining a license from the Minister of Foreign Affairs.

The decision aims to activate the role of investment funds as a tool for financing real estates developers and SME’s.

Saudi Arabia aims to double the inflow of foreign direct investment by more than 18 times during the coming decade, planning to facilitate foreign investment in the country, and to target the injection of SR27 trillion ($7.2 trillion) into the economy by 2030, according to Aleqtisadiah newspaper.

The Net foreign direct investment in the Kingdom has jumped to SR51.8 billion riyals in the second quarter of 2021, compared to SR3 billion in the same quarter of 2020, an increase of about 1574 percent based on estimated data of the Saudi Central Bank (SAMA).

While net foreign direct investment jumped by 664 percent in the second quarter of this year, compared to about SR6.8 billion riyals net foreign direct investment in the first quarter of this year.

The amount of foreign investment flowing into Saudi Arabia during the second quarter of this year is close to what was attracted during the last three years 2018, 2019 and 2020, reaching SR 15.9 billion in 2018, SR17.1 billion in 2019, and SR20.2 billion in 2020.

The Saudi Minister of Investment had said in a previous interview with AlArabiya, that the Kingdom will enjoy very high rates of foreign investment in 2021 and the coming years.

“We are still in the preparation stage, and the process of attracting foreign investment has not been fully launched, but the Kingdom has a mighty internal investment machine, such as the Public Investment Fund, which launched major projects and several companies that will be the nucleus of different sectoral groupings,” Khaled Al-Falih added.

The Kingdom launched a national investment strategy on October 11 to help increase net foreign direct investment to SR388 billion annually and to boost local investment to SR1.7 trillion per year by 2030.

“Our country holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues”, said Crown Prince of Saudi Arabia , SPA reported.  (Arab News)

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