Saudi Arabia Allows Foreigners to Own Shares in Companies
Saudi Arabia is moving towards allowing foreigners to own shares in companies listed on the Saudi Stock Exchange. Moreover, these companies own investment properties in Mecca and Medina.
Capital Market Authority’s Statement
The Saudi Capital Market Authority (CMA) is seeking public opinion on the regulations for foreign ownership. The proposed rules would enable foreign investors to own shares in listed Saudi companies that have investment properties within the two cities. However, the foreign strategic investors’ ownership is capped at 30% of a company’s shares or convertible debt instruments.
Crown Prince’s Economic Zones Initiative
The Crown Prince of Saudi Arabia has launched four special economic zones to attract foreign investment into the country.
The CMA stipulates that combined foreign natural and legal persons’ ownership must not exceed 49% of a company’s shares or its convertible debt instruments.
Listed Companies in Focus
The companies listed on “Tadawul” with real estate investments (development projects and others) in Mecca and Medina include “Makkah Construction and Development Company” and “Jabal Omar Development Company,” which is developing the Jabal Omar project in Mecca. Also listed are “Knowledge Economic City” and “Taiba Investments,” based in Medina.
Stock Price Surge
The shares of these four companies saw a significant surge in the first hour of today’s trading session on the Saudi market. Thus, they experienced increases between 8.5% and 10%, later closing with gains between 5% and 7%.