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- Saudi Arabia welcomes foreign investment into holy cities
Saudi Arabia welcomes foreign investment into holy cities
Saudi Arabia will allow foreign companies to invest in Saudi companies that own properties in Mecca and Medina, possibly forshadowing a lift on its ban on foreigners in the holy cities
In an unusual step, Saudi Arabia has allowed foreigners to invest in Saudi-listed companies that own properties in Mecca and Medina, the two holiest cities in the Islamic world.
Until now, non-Muslims are not permitted to enter the holy cities, but the change in policy on Monday could possibly be a first step towards changing that.
The country's financial market authority said in a statement that the decision "aims to stimulate investment and enhance the attractiveness and efficiency of the capital market, and enhance its regional and international competitiveness while supporting the local economy."
Foreign investment "in companies owning properties within the borders of Mecca and Medina will be limited to the shares of these Saudi companies listed on the Saudi capital market, or convertible debt instruments, or both." However, the authority said non-Saudi ownership cannot exceed 49 percent.
The Kingdom of Saudi Arabia is the largest economy in the Middle East and the largest exporter of crude oil in the world. It has been engaged for years in a broad reform agenda aimed at diversifying the economy with tourism and investment.
Indeed, Mecca receives millions of Muslim pilgrims every year, and the city is undergoing massive development aimed at attracting 30 million believers by 2030.