Foreign Investments Expected to Revive Makkah’s Real Estate Market, Says Ladun CEO
Saudi Arabia opens Makkah and Madinah real estate markets to foreign investors, signaling growth prospects for Makkah’s stagnant property sector.
Saudi construction firm Ladun Investment Co. anticipates a revitalization of Makkah’s real estate market following a new ruling from the Kingdom's market regulator, the Capital Market Authority (CMA), allowing foreign investments in Saudi-listed companies owning property in Makkah and Madinah.
The ruling, announced at the Real Estate Future Forum in Riyadh, opens the market to foreign investors, though with a cap on non-Saudi ownership at 49% of a company’s shares.
This move aims to bolster Saudi Arabia’s capital market and align with the Vision 2030 economic diversification goals.
Hassan Al-Hazmi, CEO of Ladun, expressed optimism that the new regulations would enhance investor confidence, especially in Makkah, which has seen stagnation in its property market since 2014. The region’s real estate sector was further impacted by the COVID-19 pandemic, which affected religious tourism.
However, Al-Hazmi pointed out that the market is showing signs of recovery, with a rise in share prices for companies owning assets in Makkah.
Ladun, which already manages assets in Makkah worth more than SR3.2 billion ($853.1 million), is focused on the region’s growth.
The CMA’s decision follows over three years of study and reflects a strategic effort to enhance the competitiveness of the Saudi capital market.
Al-Hazmi noted that while the regulations had been delayed, they were now more comprehensive.
Ladun’s recent investment moves, including a SR600 million partnership in Jabal Omar Development Co. in November 2024, underscore its commitment to Makkah’s real estate sector.
This investment is expected to generate approximately SR2 billion in revenue.
In addition to its real estate endeavors, Ladun is focused on supporting Vision 2030’s goal of localizing the workforce.
The company has partnered with the Ministry of Municipal and Rural Affairs and Housing to increase Saudi employment opportunities, with many young Saudis now in middle and senior management roles.
Al-Hazmi also highlighted the broader impact of Vision 2030 on Saudi Arabia's real estate market and stressed the Kingdom's stability as a key factor in attracting investment.
He referenced global remarks by BlackRock’s CEO Larry Fink, who cited the GCC region as one of the most stable and prosperous areas in the world, reinforcing confidence in Makkah’s market growth.
With strategic investments and a focus on sustainable development, Ladun remains optimistic about its role in shaping the future of Makkah’s real estate sector.
The ruling, announced at the Real Estate Future Forum in Riyadh, opens the market to foreign investors, though with a cap on non-Saudi ownership at 49% of a company’s shares.
This move aims to bolster Saudi Arabia’s capital market and align with the Vision 2030 economic diversification goals.
Hassan Al-Hazmi, CEO of Ladun, expressed optimism that the new regulations would enhance investor confidence, especially in Makkah, which has seen stagnation in its property market since 2014. The region’s real estate sector was further impacted by the COVID-19 pandemic, which affected religious tourism.
However, Al-Hazmi pointed out that the market is showing signs of recovery, with a rise in share prices for companies owning assets in Makkah.
Ladun, which already manages assets in Makkah worth more than SR3.2 billion ($853.1 million), is focused on the region’s growth.
The CMA’s decision follows over three years of study and reflects a strategic effort to enhance the competitiveness of the Saudi capital market.
Al-Hazmi noted that while the regulations had been delayed, they were now more comprehensive.
Ladun’s recent investment moves, including a SR600 million partnership in Jabal Omar Development Co. in November 2024, underscore its commitment to Makkah’s real estate sector.
This investment is expected to generate approximately SR2 billion in revenue.
In addition to its real estate endeavors, Ladun is focused on supporting Vision 2030’s goal of localizing the workforce.
The company has partnered with the Ministry of Municipal and Rural Affairs and Housing to increase Saudi employment opportunities, with many young Saudis now in middle and senior management roles.
Al-Hazmi also highlighted the broader impact of Vision 2030 on Saudi Arabia's real estate market and stressed the Kingdom's stability as a key factor in attracting investment.
He referenced global remarks by BlackRock’s CEO Larry Fink, who cited the GCC region as one of the most stable and prosperous areas in the world, reinforcing confidence in Makkah’s market growth.
With strategic investments and a focus on sustainable development, Ladun remains optimistic about its role in shaping the future of Makkah’s real estate sector.