BOOM DRIVEN BY VISION 2030, FOREIGN INVESTMENT

Fuelled by a push to diversify the economy and boost religious tourism, Makkah and Madinah are at the centre of a real estate and construction boom. The recent opening of the property markets of these holy cities to foreign investment is driving a new era of development, with mega-projects reshaping the urban landscape to accommodate the anticipated surge in the number of pilgrims.

- 

THE real estate and construction sectors in Makkah and Madinah are undergoing a significant transformation, driven by Saudi Arabia's Vision 2030 - which aims to diversify the national economy and to increase religious tourism - and the recent opening of the property markets of these holy cities to foreign investment.

While direct foreign ownership in Makkah and Madinah is generally restricted, indirect investment is now permitted through Saudi-listed companies and real estate funds. As of January 27, 2025, the Capital Market Authority (CMA) formally allowed foreign investment in Saudi-listed companies that own real estate in these holy cities. This approach allows the kingdom to attract capital and expertise for its mega-projects while retaining control over sacred areas. A new, more progressive legal framework, the Law of Real Estate Ownership and Investment by Non-Saudis, was approved on July 8, 2025, and will come into effect in January 2026, replacing the restrictive 2000 framework. The new law allows Muslim foreign individuals and foreign-owned Saudi businesses to acquire limited ownership and property rights in Makkah or Madinah, under certain conditions to be detailed in the regulations.

The ambitious goals of Saudi Vision 2030 place Makkah and Madinah at the very core of the kingdom's economic diversification strategy. A primary objective is the Pilgrim Experience Programme, which aims to host 30 million Umrah performers and six million Hajj pilgrims annually by 2030. Achieving these targets necessitates a monumental expansion of accommodation, services, and supporting infrastructure. The ongoing real estate boom in these cities is a direct consequence of this national imperative.