HOLY ACCESS

New Saudi rules allow foreigners to invest in Mecca and Madinah

Still, the Capital Market Authority said that foreign ownership cannot exceed 49% of the Saudi company’s listed shares

An aerial view shows the Abraj al-Bait also known as the Mecca Royal Hotel Clock Tower (Getty Images)

New rules taking force on Monday now allow foreigners to invest in publicly traded companies owning real estate in the Islamic holy cities of Mecca and Madinah, another step in Saudi Arabia effort to attract overseas funds.

According to a statement from the Capital Market Authority, those who wish to invest can purchase shares and convertible debt instruments in firms listed on the Saudi stock exchange that own real estate within the boundaries of the cities, Bloomberg reports.

Still, the CMA said that foreign ownership cannot exceed 49% of a company’s listed shares.

Following the news, property stocks rose, including shares of Jabal Omar Development Co. that jumped as much as 10%.