Saudi has opened up foreign investment into real estate firms in its holy cities this week, a move that will support religious travel.

Saudi Arabia on Monday said foreigners are from now on allowed to invest in Saudi-listed companies that own property in Mecca and Medina, Islam’s two holiest cities. The decision “aims to stimulate investment,

Saudi Arabia’s market watchdog, the Capital Market Authority (CMA), said in a statement the move aimed to attract foreign capital and provide liquidity for present and future projects in the two cities.

The kingdom has also reoriented its spending from overseas into its domestic market. One indicator of this was that in 2024, the UAE’s Mubadala surpassed Saudi Arabia’s Public Investment Fund (PIF) as the world’s most active sovereign wealth fund.

Saudi Arabia's market regulator revealed that foreign investors are now permitted to invest in publicly traded companies that own real estate in Mecca and Medina. This initiative is part of the kingdom's strategy to draw international investment and increase liquidity for projects in these prominent religious cities.

The Capital Market Authority (CMA) specified that foreign investment will be limited to shares, convertible debt instruments or both

Saudi Arabia's decision to allow foreign investment in Mecca and Medina real estate opens new opportunities for global investors while boosting economic diversification under Vision 2030.