Makkah is boosting its infrastructure in a bid to facilitate pilgrims and attract further investors.

In a major move, Saudi Arabia has granted permission to companies listed on the Saudi Stock Exchange (Tadawul) to buy real estate in Makkah and Madinah.

This comes following the approval from Council of Ministers amending Article 5 of the Law of Real Estate Ownership and Investment by non-Saudis under which listed Saudi companies are now allowed to own real estate within the borders of Makkah and Madinah, reported Saudi Gazette.

As per this law, a non-Saudi investor with a natural or corporate personality licensed to practice any professional, vocational, or economic activity may acquire the real estate necessary for practising the activity in Makkah and Madinah.

It is also stipulated that such real estate must be invested within five years from the date it is acquired, stated the report.

The amendment, approved by the cabinet, included listed companies in the purview of those permissible to own and invest in properties in Makkah.

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 allows ownership of property in Makkah and Madinah to “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, the report added.