Mecca and Medina will soon be open to foreign real estate investment, in line with Saudi Arabia. A move that will bolster the country’s standing as a top global investment destination and promote economic development.
Reasons for permitting investment in Mecca and Medina
To be more specific, the Saudi Capital Market Authority wants to make it possible for non-Saudis to own real estate in Mecca and Medina. This will draw in foreign investors and boost the local economy.
This choice is consistent with the Kingdom’s Vision 2030, which focuses on the creation of new economic sectors and overall development.
Mohammed Al-Quwaiz, the Chairman of the Capital Market Authority, describes this move as a basic emphasis for growing creative real estate sectors and diversified financing solutions, both of which help to create a sustainable real estate future.
Saudi Arabia’s aim to draw in more foreign investments is contributing to the real estate boom in Mecca and Medina. These investments boost GDP, create jobs, and promote economic expansion.
In the two significant cities, it also seems likely that demand for real estate will rise and that real estate services will advance.
With residential, commercial, and industrial sectors, the Saudi real estate market is perhaps one of the most significant economic sectors. The choice to engage in overseas real estate garners attention from across the globe and bolsters Saudi Arabia’s growth possibilities.
Saudi Real Estate Market Figures
There are three primary segments of the Saudi real estate market:
- The residential sector, specifically homes, villas, and flats, accounts for around 60% of the market size.
- The commercial sector, especially offices, stores, and commercial centres, accounts for around 20% of the market.
- The industrial sector, including factories and warehouses, accounts for 20%.