Thus Saudi Arabia opened the holy cities for foreign investors

This is another step in the 2030 vision, designed to diversify the Saudi economy. Today, the oil rate from the Saudi product is about 46%, with the required development of Mecca and the state understanding the Saudis that they cannot rely only on Muslims.

In 2021, the kingdom made a first move that allowed foreign citizens to register in funds involved in real estate ventures in Mecca and the state, but do not make direct investments in shares or debt devices. Up to 49% of shares of companies recorded on the Saudi stock exchange and holding assets in the holy cities.

“The move will encourage investments, increase the attractiveness and efficiency of the capital market and strengthen its regional and international competitiveness, supporting the local economy,” the Saudi capital market authority said. Until the announcement, non -Muslims could hold assets on Saudi Arabia, except for a hit and a state, with a residency permission to invest 4 million Riyad (about $ 1.1 million) in residential real estate.

Vision: 30 million immigrants per year

The new decision of the Saudi Capital Market Authority that entered immediately, includes a permit for citizens or foreign companies to invest in real estate companies whose income is influenced by pilgrimage as part of the Hajj (a pilgrimage for four days in D. al -Haja, which is one of the commandments The most important in Islam) or the leap (pilgrimage throughout the year).

Each year, Saudi Arabia sweeps only $ 12 billion from the Hajj era, with the average expense of a non -Saudi pilgrimage being estimated at $ 10-3,000 – according to statistics. As part of the vision of 2030, the expectation is about 30 million immigrants in Peugeot and at the beginning of the next decade, compared to only 8.5 million “at the time.

In total, the pilgrimage -based business value is expected to grow to $ 350 billion in 2032, hence the great potential for foreign investors. “The decision will assist the liquidity of present and future ventures expected in Mecca and the country,” the Saudi capital market explained.

The largest real estate companies in Saudi Arabia immediately flourished as a result of the declaration, leading the Saudi Green Green Stock Exchange. Investment and Amaar Akonomic City.

A fairly surprising state in which great interest was recorded as a result of the developments in Saudi Arabia is India. About 15% of its population (about 210 million people) are Muslims, which have become the most significant source of pilgrims coming to the kingdom. Over the past two years, about 139,000 Muslims from India have entered the Mecca and the country, who have reached the purposes of the dead or Hajj.

“The Saudis set up very ambitious goals for more five years, but like other programs like vision 2030 – this is a vision,” explains Dr. Joel Guzanski, head of the regional arena at the National Security Research Institute (InsSS), Tel Aviv University. ” Squeeze the lemon of the pilgrimage that yields greatly to the Saudis. The move expresses the tension between religion and economics, and the economy is a bit growing. ”

Guzanski estimates that the Saudis take “drastic” actions because they failed to meet their growth goals: “I don’t think they have been able to get enough goals, and ventures like non -progressing speech at the rate. Mecca and the state are not economic centers like Jed Veiad, so it is interesting. The Saudis do not succeed in the economic competition against Dubai, which has become a worldwide, and therefore steps that look drastic and far -reaching. ”

Plans less grandiose to the holy cities

Mecca and state are a regular tourist source of Saudi Arabia, so an optimistic horizon for investors is guaranteed. In the eyes of Ben Salman, this is an opportunity for opportunities for increasing preparation for immigration in the number of pilgrims in the coming years, in tandem with the desire for diversity of economics.

The Saudis are the world’s top oil exporters, with about 5.9 million barrels a day. The Saudi economy is also the largest in the area ($ 1.07 trillion, according to the World Bank), and the Saudi stock exchange also has the highest total value in the Gulf – about $ 2.72 trillion (10.2 trillion Real). However, the world strives to wean from fossil fuels so the need for the diversity of the economy crosses sectors.

In the case of hit, the Saudi wealth fund finances a huge project called “Masar,” which will include 40,000 new hotel rooms. In terms of Muhammad Ben Salman’s grandiose projects, this is a relatively small investment. The most prominent expenditure of all is the crown prince’s flagship: the future of a speech, which spans 26.5 square kilometers near Tiran Straits, and a budget is expected to be $ 1.5 trillion.

The big expenses and oil dependence bring to the situation that according to the International Transition Fund, the kingdom is required for a $ 96 barrel price – so as not to resist a deficit. However, the price of a Brent oil barrel is now low in more than $ 20 of the same level, and the last time a barrel is about such a price was in October 2022. Paradise last year by 37%: from $ 31.6 billion at $ 2023 to $ 19.9 billion in 2024.

For the comparison, the Amina Mubadla Foundation, which holds 11% of Tamar, was the wealth fund that invested the highest amount in the world last year, with an annual jump of about 67%: from $ 17.5 billion in 2023 to about $ 29.2 billion (107 billion Dirham) in 2024.

On the other hand, Riyadh sold an international bond last year of $ 17 billion, which set it according to Bloomberg in the world in the world among the developing markets after Romania.