Now foreigners can invest in Makkah, Madinah property
Now foreigners can invest in Makkah, Madinah property/node/2587967/business-economy
Now foreigners can invest in Makkah, Madinah property
Strengthening the real estate sector and attracting more FDI into the Kingdom is one of the key goals outlined under the Vision 2030 program. (AFP)
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Updated 28 January 2025
Nirmal Narayanan
Now foreigners can invest in Makkah, Madinah property
The move aims to boost the capital market’s competitiveness
Updated 28 January 2025
Nirmal Narayanan
RIYADH: Foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah, following a landmark decision by the Saudi Capital Market Authority.
Effective immediately, the move aims to boost the capital market’s competitiveness and align with the Kingdom’s Vision 2030 economic diversification objectives, the CMA announced in a press release.
While non-Saudis are allowed to purchase properties in the Kingdom, there are specific restrictions, and in the holy cities ownership is generally limited to Saudi nationals — although foreigners are allowed to lease properties there.
Under the new guidelines, foreign investments are limited to shares or convertible debt instruments of listed companies. Total non-Saudi ownership, including individuals and legal entities, is capped at 49 percent of a company’s shares.
However, strategic foreign investors are prohibited from holding stakes in these companies.
The move comes amid reforms across the region, with most neighboring countries allowing foreigners to own properties, primarily in free zones or designated areas under certain restrictions.
“Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” said the CMA.
The changes are also designed to stimulate foreign direct investment in the Kingdom’s capital market, as well as bolster its regional and international competitiveness.
“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” added the CMA.
Strengthening the real estate sector and attracting more FDI into the Kingdom is one of the key goals outlined under the Vision 2030 program, as Ƶ aims to reduce its dependence on crude revenues and diversify its economy.
The Kingdom aims to attract $100 billion in FDI by the end of this decade, and the government body has been implementing various initiatives and reforms to enhance the attractiveness of the capital market.
Some of these efforts include allowing foreign residents to directly invest in the stock market, enabling non-Saudi investors to access the market through swap agreements, and permitting qualified foreign capital institutions to invest in listed securities.
The CMA has also allowed foreign strategic investors to acquire strategic stakes in listed companies and directly invest in debt instruments.
In 2021, the CMA also allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah, which played a crucial role in increasing the attractiveness of the capital market to both regional and international investors.
The share prices of real estate companies listed on Ƶ’s stock exchange surged following the CMA’s announcement.
Knowledge Economic City saw its share price rise by 9.89 percent to close at SR16.66 ($4.44).
Jabal Omar Development Co.’s share price also increased by 10 percent to SR25.85, while Makkah Construction and Development Co.’s stock price climbed 9.84 percent to close at SR106.
AI, digital payments and youth fueling Ƶ’s e-commerce boom
Updated 19 sec ago
Miguel Hadchity
RIYADH: Ƶ’s e-commerce sector is poised for unprecedented growth, with the market projected to surge to $708.7 billion by 2033, nearly triple its current size..
In its Ƶ E-commerce Market Report, market research firm IMARC said this remarkable expansion, fueled by artificial intelligence, frictionless digital payments, and a young, tech-savvy population, is transforming how Saudis shop while creating new economic opportunities across the Kingdom.
The convergence of multiple powerful trends is accelerating Ƶ’s transition to an e-commerce powerhouse.
Widespread internet access, with over 98 percent of the population now online, combined with one of the world’s highest smartphone penetration rates, has created ideal conditions for digital retail to flourish.
The COVID-19 pandemic served as a catalyst, accelerating the shift to online shopping, but the growth trajectory has only steepened in its aftermath.
Government initiatives under Vision 2030 are providing crucial support, with digital transformation at the heart of the Kingdom’s economic diversification strategy.
This policy backing, coupled with a demographic dividend — more than half of Saudis are under 30 — has created a consumer base that increasingly prefers the convenience and choice of online shopping.
Mohammed Dhedhi, partner at consumer and retail practice at Kearney, highlighted the structural factors driving this growth.
“Ƶ’s e-commerce surge is underpinned by proactive government support and a tech-savvy infrastructure that outpaces many peers,” he told Arab News.
Dhedhi added that the 2019 e-commerce law and Vision 2030 reforms have boosted online consumer trust and eased digital business.
“In addition, moves across the ecosystem, from widespread digital payments to new fulfillment centers remove friction in online shopping, whereas other emerging markets often grapple with patchy connectivity and cash-heavy systems,” he said.
The Kearney partner highlighted how Ƶ’s young savvy population are “enthusiastically embracing online retail,” and noted that the Kingdom’s structural fundamentals are propelling e-commerce growth faster than in many developing markets, “which is why we see the growth forecast for the market at 12-14 percent per year for the next five years.”
Mohammed Dhedhi, partner at consumer and retail practice at Kearney. Supplied
The new retail reality
Mobile commerce now dominates the landscape, according to IMARC, with smartphones becoming the primary shopping device for millions.
Social media platforms have evolved into vibrant marketplaces, where 35.33 million users discover products through influencers and make purchases without leaving their favorite apps.
Mohamed El-Ansari, CEO of Trendyol Gulf, a Turkish e-commerce platform, emphasized the role of social commerce in reshaping shopping habits. “The country has one of the youngest and most connected populations in the world, with nearly 100 percent Internet penetration, and it is increasingly shopping online in a retail market that still has plenty of room for growth.”
He added: “For Gen Z and millennials especially, the shopping journey often starts with a scroll, and inspiration can turn into intent in seconds.”
Live shopping events and instant checkout features are becoming routine parts of the consumer experience. Payment systems have undergone their own revolution. The digital payments market reached $1.16 billion in 2024, with options such as buy now, pay later plans and mobile wallets reducing reliance on cash.
El-Ansari noted the shift in payment preferences: “Cash on delivery still matters in Saudi, but digital payments are growing quickly, especially with younger, digital first shoppers.”
The CEO highlighted the Kingdom’s national payment card system, Mada, saying that it “remains a core local payment method.” He added that Apple Pay has also become extremely popular in the Kingdom and across the region.
Mada supports both debit and prepaid services within its network, the cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online.
In 2024, e-commerce sales using Mada cards in Ƶ reached SR197.42 billion ($52.64 billion), a year-on-year growth of 25.82 percent, according to data from the Kingdom’s central bank. These figures include payments for online shopping, in-app purchases, and e-wallet transactions, but exclude transactions using credit cards such as Visa and MasterCard.
Enhanced security measures and streamlined checkout processes have helped overcome initial consumer hesitations about online transactions.
Behind the scenes, AI is personalizing the shopping journey like never before. Sophisticated algorithms analyze browsing patterns to serve up tailored recommendations, while chatbots provide instant customer service. Augmented reality allows shoppers to virtually try on clothes or visualize furniture in their homes before purchasing.
Mohamed El-Ansari, CEO of Trendyol Gulf. Supplied
El-Ansari explained Trendyol Gulf’s approach to localization and personalization. “When we entered the Gulf, we avoided a one-size-fits-all strategy,” he said. “We spent time listening to shoppers and sellers, learning what mattered most locally, and building from there.”
He added: “Cultural relevance, from pricing expectations to seasonal product curation, has proven essential to long-term loyalty. This means building local teams, curating region-specific collections, and partnering with Saudi SMEs.”
El-Ansari went on to explain: “It can include modest fashion edits for Ramadan, beauty imagery that reflects diverse skin tones, or packaging that feels premium enough for gifting. These are the kinds of details that make a big difference in creating a trusted, relevant experience.”
Winners and growth sectors
The electronics category continued to lead, with Saudis increasingly turning to online platforms to purchase smartphones, laptops, and accessories. The sector, valued at $13.5 billion in 2024, benefits from detailed product information, user reviews, and competitive pricing available through e-commerce channels.
But the real growth stories are emerging in previously offline sectors. Online grocery shopping has taken off, with consumers appreciating the convenience of doorstep delivery for everyday essentials.
Healthcare e-commerce is expanding rapidly, while fashion retail has found new life through social commerce and virtual fitting technologies.
Small and medium enterprises are proving particularly adept at capitalizing on these trends. The low barriers to entry in digital marketplaces allow SMEs to compete effectively with larger players, often by carving out specialized niches or offering personalized service. Government programs supporting digital entrepreneurship are helping these businesses thrive.
Taking on the giants
Kearney’s Dhedhi added insights on how SMEs can leverage partnerships to compete with global players, saying: “Many local businesses are teaming up with major platforms, for example, e-commerce enabler Zid integrates with Amazon Marketplace, TikTok Shop, and other channels, giving homegrown merchants access to wider customer bases, sophisticated logistics, and marketing tools that the giants provide.”
He added that by co-selling on international marketplaces, joining global fulfillment networks, or co-branding product lines with established retailers, Saudi SMEs can leverage the infrastructure of these marketplaces.
“These collaborations allow small merchants to focus on their niche products and local customer knowledge, essentially turning would-be competitors into growth partners and leveling the playing field with international brands.”
Transforming the Kingdom’s economic future
The implications of this e-commerce boom extend far beyond retail. The sector is creating thousands of jobs, from tech development to last-mile delivery. It’s enabling Saudi entrepreneurs to reach national and regional markets with unprecedented ease. Perhaps most significantly, it’s serving as a cornerstone of the Kingdom’s economic modernization efforts under Vision 2030.
Dhedhi explained the broader economic impact saying that this e-commerce boom is contributing to the non-oil economy.
“Online sales accounted for only about 6 percent of the Kingdom’s $92.6 billion retail market in 2023, but served as an accelerator by invigorating sectors like retail and logistics, retail led non-oil GDP (gross domestic product) growth of 4.2 percent in 2024, and stimulating other industries,” he said.
The Kearney’s partner also explained that this boom can be a strong channel to support and further develop localization initiatives across the Kingdom.
He said that the ecosystem benefits from e-commerce growth, as online shopping boosts demand for warehousing, delivery, digital payments, and tech startups, supporting Vision 2030’s diversification goals.
On the logistics front, El-Ansari addressed concerns about oversupply. “Oversupply isn’t the core issue; it’s smart utilization,” he said, adding: “The real key to speed and reliability is controlling local infrastructure and using it well.”
Dhedhi discussed sustainable solutions for last-mile logistics, pointing to the Kingdom’s goal for 30 percent of all vehicles in Riyadh to be electric by 2030.
He noted that coupled with AI-driven route optimization, these measures significantly shrink the carbon footprint per package. “A blend of electric mobility, smart technology, and new delivery models are being scaled up to make the e-commerce last mile ‘cleaner’ and more sustainable.”
As Saudi consumers grow increasingly comfortable with digital commerce, and as technologies like AI and AR make the experience ever more seamless, the $708 billion projection may prove conservative.
Saudi Authority for Intellectual Property plays a leading role in preventing such cybercrimes
Saudi laws such as the Personal Data Protection Law and the Anti-Cybercrime Law directly safeguard personal identity
Updated 03 October 2025
Haifa Al-Shammari
RIYADH: As modern technology continues to advance, artificial intelligence is becoming central to everyday life, reshaping how people interact with information and identity.
From sourcing data and generating images to powering live-streamed avatars like VTubers, AI is transforming creativity and entertainment. Yet, these innovations also bring risks — particularly the growing threat of digital identity theft. Without proper safeguards, creative ideas and personal likenesses can be copied, misused, or stolen.
A creator’s perspective
Saudi content creator and VTuber PikaLoli knows these challenges firsthand. She explained the importance of protecting her digital persona.
“Since my character and brand exist only online, it’s really important for me to prevent others from copying or misusing my content,” she said.
Shutterstock illustration image
Working as a VTuber, she added, is a demanding role that blends multiple disciplines. “I produce gaming videos, roleplays, and short storytelling on YouTube, blending technology and creativity to bring magical digital experiences to life. Although I appear as an animated character, every part of my content is carefully crafted and fully run by me.”
Since launching her channel in April 2021, PikaLoli has gained more than 1 million subscribers and built an online community she plans to expand further. But the work, she stressed, is more than a hobby: It’s a full-time job that involves voice acting, editing, directing, and staying creative nonstop.”
Despite embracing digital platforms, she remains cautious about AI. “As much as I love how AI can help with animation and content ideas, I don’t fully trust it to represent my identity. It’s my voice, my energy. AI can’t replace the real Pikaloli. I see AI more like a tool or assistant, not a creator.”
Opinion
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To protect her work, she relies not on watermarks, but on the uniqueness of her character and the loyalty of her fans. “Even if someone tries, I trust my community to recognize and support the original.”
She also uses secure platforms, monitors for content misuse, and stays closely connected with her community. As she put it, “a strong community helps protect you from impersonators too.”
A global challenge
Concerns about identity theft extend far beyond individual creators. Globally, millions fall victim to digital fraud each year. In France alone, more than 200,000 people are affected annually. Offenders can face penalties of up to one year in prison and a fine of 15,000 euros ($16,300), according to the IN Group website.
The website describes identity theft as a crime in which someone assumes the identity of another person — or uses their information without consent — in ways that can cause harm to reputation, finances, or security.
Ƶ’s regulatory framework
In Ƶ, the Saudi Authority for Intellectual Property plays a leading role in preventing such crimes.
“SAIP aims to regulate, support, develop, nurture, protect, enforce, and enhance IP in Ƶ in line with global best practices. It reports directly to his royal highness, prime minister,” said Fahad Alzamil, executive director of corporate communication and spokesman for SAIP.
SAIP illustration photo
He explained that both citizens and residents can register copyrights, trademarks, and patents online.
“All citizens and residents within Ƶ can apply for intellectual property registration through the official website of the Saudi Authority for Intellectual Property. The process requires accurately completing all required fields in the application.”
With AI making it easier than ever to create manipulated images or videos, Alzamil stressed that regulations are in place to protect people from such risks. He cited Article 17 of the Copyright Law, which “prohibits the publication, display, or distribution of a photograph without the permission of the person depicted, covering both traditional and AI-generated pictures or audiovisual works.”
DID YOU KNOW?
• In France, more than 200,000 people fall victim to identity theft every year, leading the government to introduce strict regulations to combat the issue.
• Article 17 of Ƶ’s Copyright Law prohibits the publication, display, or distribution of a photograph without the permission of the person depicted — a rule that applies to both traditional and AI-generated images and audiovisual works.
• The Saudi Authority for Intellectual Property’s Beneficiary Support Center offers comprehensive assistance, including in-person consultations, complaint handling, and follow-up services.
In addition, Saudi laws such as the Personal Data Protection Law and the Anti-Cybercrime Law directly safeguard personal identity.
To strengthen enforcement, SAIP combines advanced monitoring tools with awareness campaigns. According to Alzamil, the authority also works with international bodies like the World Intellectual Property Organization to ensure alignment with global best practices.
Balancing innovation and security
AI offers vast opportunities for innovation but also raises pressing concerns about identity protection. For creators like PikaLoli, maintaining authenticity requires vigilance, while for regulators like SAIP, it means building strong legal and digital safeguards.
As Alzamil emphasized, protecting digital identity is not only a matter of law but also of awareness and collaboration. The future of creativity, he suggested, depends on trust, responsibility, and collective efforts to secure both identity and intellectual property in the digital age.
Margarete Schramboeck, board member of Aramco Digital. (AN photo by Abdulrahman Bin Shalhoub)
Updated 03 October 2025
Hajar AlQusayer
Cyber threats demand increased investment to secure global power grids, experts say
Updated 03 October 2025
Hajar AlQusayer
RIYADH: As global momentum builds toward cleaner and smarter energy systems, cyberattacks on power grids and transmission lines are emerging as a growing challenge to resilience.
Speaking to Arab News on the sidelines of the Global Cybersecurity Forum in Riyadh, Heidi Crebo-Rediker, senior fellow at the Council on Foreign Relations, said that investment in energy infrastructure was critical to protect against cyberattacks, which were becoming a major threat to energy systems worldwide.
“I think that the under-investment in the energy grid and energy related infrastructure is obviously a critical priority,” she said. “Finding the money to do that, and the will to do that, is a challenge, and it falls on both public and private hands. So it’s really whose responsibility is it to pay for it, who prioritizes, but at the end of the day, if we don’t have a resilient energy infrastructure, then we have potentially massive, catastrophic shocks to businesses and to the economy at large.”
A recent Boston Consulting Group report said that quantum computing could unlock more than $50 billion in value across industries, with energy representing the largest opportunity. In oil and gas alone, the potential savings range from $6 billion to $30 billion.
“We already know that attacks from traditional types of threats can be catastrophic for the energy infrastructure, but cyber is a dominant risk,” Crebo-Rediker said.
She emphasized that resilience depended on effective cooperation, both domestically and internationally. “It’s not just collaboration between public and private,” she said. “Energy is global, and having cooperation between different countries on cybersecurity is imperative.”
Crebo-Rediker said that governance models also mattered, noting that “you have to have a much better working relationship between the public sector and the private sector.”
She added that it was difficult to know if enough was being invested until an effective cyberattack occured. “You never know if you’ve spent enough and invested enough, and if you’re resilient enough, until you are able to counter an attack that would otherwise shut you down,” she said.
“The idea is really to minimize the impact of cyberattacks, because as part of critical infrastructure you can’t have a functioning economy without your energy systems working.”
Crebo-Rediker added that the stakes were particularly high in regions where extreme climates or advanced industries demanded constant power. “For parts of the world that are either very hot, very cold, or dependent on high-tech industries, chip manufacturing companies, fabs (high-technology fabrication plants), all require constant energy to keep their systems operational, otherwise you have cascading negative effects on industry as a result,” she said.
Margarete Schramboeck, board member of Aramco Digital, said that energy security must be treated as the backbone of every economy.
“The energy sectors are the lifelines of each economy. We have seen this. If these lifelines are cut or not functioning anymore, the whole economy can go down,” she said. “A good energy sector is therefore key for each economy, and therefore it becomes a target for cybersecurity attacks, and it needs to be protected.”
Schramboeck highlighted the challenge of modernizing outdated systems. “In a lot of countries around the world, energy sectors are sometimes an infrastructure that is old,” she said. “So how can you combine innovations from the digital sector with these old investments which are actually not connected, which is difficult to handle.
“To find solutions, there is the key role for the next generations, and these generations, especially a lot of startups, but also existing big tech companies, invest a lot of their brains into solving this topic.”
She highlighted the importance of ongoing investment. “For the energy industry, there is continuous spending needed and, in my view, it will grow over the years,” she said. “When we see the next generations of threats coming ahead, there will be new investments needed. And I want to mention especially one big investment, which is absolutely necessary. It is into human capital. It’s into the next generation, the young people, training them, educating them.”
Schramboeck said that the Kingdom was also driving innovation in energy. “For the energy infrastructure, Ƶ is really doing a lot ... There is a lot of investment in startups and an ecosystem of next-generation energy solutions. And this has started a few years ago and is continuing, and I am convinced it will have a positive impact soon.
“It’s always about these two factors. It’s in investment in hardware, software and innovative solutions on the one hand side, but even more in people. Only when both are considered and taken care of, then we’re looking into a safe and secure future.”
The Global Cybersecurity Forum concluded on Thursday after two days of discussions with policymakers and industry leaders, under the theme “Scaling Cohesive Advancement in Cyberspace.”
Palestinian food company sees sales soar as UK consumers show solidarity
Zaytoun, which sells olive oil, dates and other foodstuffs, saw a 50% rise in sales last year
‘The hardiness of the olive tree, what it can withstand, is very much symbolic to Palestinians’
Updated 02 October 2025
Arab News
LONDON: A Palestinian food company says it believes a 50 percent increase in sales in the UK is due to customers showing solidarity with people in the West Bank and Gaza.
Zaytoun had revenues of £3.2 million ($4.289 million) in 2024, driven by sales of its extra virgin olive oil and medjool dates, as well as almonds and giant couscous.
Meaning olive in Arabic, Zaytoun is a fair trade enterprise looking to help Palestinian agricultural communities.
It launched in 2004 and sales have steadily risen, with 500 milliliter bottles of its oil selling for around £15 in the UK.
Manal Ramadan White, Zaytoun’s managing director, told The Guardian that the sales show people “wanting to make a difference with their purchasing power.”
She added: “From 2023 to 2024 we grew by about 50 percent due to the UK market wanting to show support in some way.”
Ramadan White said questions had dogged Zaytoun about the expense of the product from the outset required to give Palestinian farmers a fair income.
“The products are really expensive to buy, so there’s not much profit margin,” she said. “Yet 21 years later, here we are.”
The Fairtrade Foundation ensures that producers receive proper remuneration and an additional premium on their goods. In the UK last year, £28 million were generated in sales for the Fairtrade premium alone.
Zaytoun, however, has been unable to carry the Fairtrade logo on its products for over a year due to the security situation in the region preventing official checks from taking place.
“We haven’t been able to get Fairtrade organic certified olive oil out of Palestine for almost a year now,” said Ramadan White. “The certifier pulled out at very short notice and without a handover.”
Zaytoun has not changed its suppliers, working with the same producers across the West Bank, and says it hopes to have auditors certify its products by the time of the next harvest.
“The landscape is dotted with olive trees … Most families have some whether it’s 20 or thousands,” said Ramadan White.
“The hardiness of the olive tree, what it can withstand, is very much symbolic to Palestinians. It’s a metaphor for their resilience and hardiness through all these challenging times.”
As well as certification, the war in Gaza has made transportation of goods difficult, with extra security — including checkpoints and sniffer dog inspections — hampering exports through the Israeli port of Haifa.
In a statement, Fairtrade said it would “raise our voices in solidarity with the people of Gaza and the West Bank whose futures are being deliberately dismantled.”
The foundation’s CEO Eleanor Harrison said: “We believe that every person has the right to live and work in safety and determine their own future.”
She added: “We stand for fairness, solidarity, and the empowerment of people to decide on their own futures. We cannot remain silent while the foundations of life are being destroyed.”
Foreign investor rule changes for Saudi stock market out for consultation
Updated 02 October 2025
Nour El-Shaeri
RIYADH: Foreign investors may soon be able to buy Saudi stocks without restrictions, under a draft plan aimed at boosting liquidity and expanding the Kingdom’s $3 trillion equity market.
The proposal, now out for a 30-day consultation, would allow all categories of non-resident investors to purchase shares directly on the Tadawul Main Market.
It would dismantle the Qualified Foreign Investor framework and scrap swap agreements, long seen as barriers to international participation, according to an official release.
Gulf markets such as Dubai, Abu Dhabi, and Qatar, as well as Kuwait, Bahrain, and Oman, already allow foreign investors to buy shares directly, boosting liquidity, attracting global capital, and modernizing their exchanges.
Foreign ownership in Saudi equities has already climbed sharply, exceeding SR528 billion ($141 billion) by the second quarter of 2025, Capital Market Authority data shows. If approved, the changes would mark the most significant market opening since direct foreign access was first introduced in 2015.
“The draft aims to broaden and diversify the base of investors eligible to participate in the Main Market, while also attracting additional investments and increasing market liquidity,” the CMA said.
The consultation runs until Oct. 31, with final rules to follow after feedback is reviewed.
Once approved, foreign investors would be able to purchase shares in listed companies on the main market directly, without going through these extra layers. Non-resident investors would be able to open accounts and invest directly in listed securities.
Ƶ’s move fits into a broader program of capital-market modernization aimed at boosting liquidity and global participation.
In July, the CMA eased rules for foreign investors to open accounts, while amendments to investment fund regulations aligned the market more closely with global standards.
The latest draft follows a late-September policy signal that fueled a rally in Saudi equities and comes as officials weigh lifting the long-standing 49 percent cap on foreign ownership.
The CMA pointed to strong growth in overseas participation as a foundation for the change.
The regulator framed the draft as part of a phased approach to position Riyadh as an international marketplace capable of attracting larger, more diverse flows of foreign capital.
The initiative, it said, is intended to strengthen confidence among market participants and support the broader local economy.
Stakeholders can submit comments through the Unified Electronic Platform for Consulting the Public and Government Entities or via a prescribed email form. The CMA said it will review all relevant submissions before finalizing the amendments.
