Saudi Arabia’s Council of Ministers has granted permission to companies listed on the Saudi Stock Exchange (Tadawul) to buy real estate in Makkah and Madinah – a major move for the Kingdom’s real estate sector.

According to a report by the Saudi Gazette, the announcement comes following the approval from the Council of Ministers to amend Article 5 of the Law of Real Estate Ownership and Investment by non-Saudis, under which listed Saudi companies are exempted from the prohibition of non-Saudis owning real estate within the borders of Makkah and Madinah.

As per this law, a non-Saudi investor with a natural or corporate personality that is licensed to practice any professional, vocational or economic activity, will be able to acquire the real estate necessary for practicing the activity in the cities of Makkah and Madinah.

Furthermore, it has also been stipulated that such real estate be invested within five years from its acquirement, the Gazette added. The amendment, approved by the cabinet, included listed companies in the purview of those permissible to own and invest in properties in Makkah.

The report stated that the cabinet had earlier approved the law and a royal decree was issued in this regard in 2019. The new amendment made in the law read as follows: “Companies Listed in the Saudi Stock Exchange, according to controls set by the Capital Market Authority in coordination with the relevant authorities.”

The amendment was made following a recommendation by the Council of Economic and Development Affairs and the General Committee for the Council of Ministers and a decision of the Shoura Council, it conclud