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Saudi National Development Fund Partners with World Economic Forum

The agreement was signed at the NDF headquarters by Chief of Staff Khalid bin Ibrahim Shareef and WEF Head of Global Partner Development and Executive Committee member Alexandre Raffoul. SPA
The agreement was signed at the NDF headquarters by Chief of Staff Khalid bin Ibrahim Shareef and WEF Head of Global Partner Development and Executive Committee member Alexandre Raffoul. SPA
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Saudi National Development Fund Partners with World Economic Forum

The agreement was signed at the NDF headquarters by Chief of Staff Khalid bin Ibrahim Shareef and WEF Head of Global Partner Development and Executive Committee member Alexandre Raffoul. SPA
The agreement was signed at the NDF headquarters by Chief of Staff Khalid bin Ibrahim Shareef and WEF Head of Global Partner Development and Executive Committee member Alexandre Raffoul. SPA

Saudi Arabia’s National Development Fund (NDF) has concluded a partnership agreement with the World Economic Forum (WEF), with the goal of accession to the forum, according to an NDF statement.

The agreement was signed at the NDF headquarters by Chief of Staff Khalid bin Ibrahim Shareef and WEF Head of Global Partner Development and Executive Committee member Alexandre Raffoul.
According to the statement, the agreement aims to enhance the NDF's global standing through WEF's platforms. This will involve promoting the NDF's global position in development finance, communicating with other relevant external organizations, and collaborating with them to address challenges in development finance.

The collaboration will allow NDF to acquire the best global practices, find solutions, develop sound policies for the ecosystem, and maximize its economic impact. It will also foster partnerships with financial institutions and companies across various fields.
The partnership provides a platform for NDF to exchange knowledge and expertise with worldwide leaders from the public and private sectors. Additionally, the NDF will benefit from participating in year-round conferences, seminars, and workshops organized by the forum and gain access to the latest information, research, and reports across various economic, commercial, and social fields. This will help the NDF stay informed about the latest global trends and emerging technologies in economics and the financial sector.
The WEF membership includes the world's leading development finance institutions, such as the Islamic Development Bank, the African Development Bank, the World Bank Group, the China Development Bank, the Japan Development Bank, the Export-Import Bank of China, and other international financial institutions.
NDF acts as an umbrella for 12 development funds and banks in Saudi Arabia. Its mission is to boost their performance, foster collaboration among them, augment their economic and social impact, and keep finance and development loans flowing across various sectors. This is achieved by prioritizing investments in sectors with strong potential to align with and fulfill the goals and priorities of the Saudi Vision 2030.

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Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
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Foreign Investment in Makkah, Madinah Real Estate Company Shares Boosts Capital Inflows 

Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)
Hotels and shops are seen near the Prophet's Mosque in Madinah. (SPA)

Real estate experts have welcomed Saudi Arabia’s decision to allow foreign investment in real estate companies in the Makkah and Madinah regions. They said it will attract more foreign capital, speed up major projects, and support development in these cities.

The Saudi Capital Market Authority (CMA) said in a statement that this move 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.

“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,” the statement added.

The CMA decision follows the approval of the controls for the exclusion of companies listed in the Saudi Stock Exchange (Tadawul) from the meaning of the phrase (Non-Saudi) in accordance with the Law of Real Estate Ownership and Investment by Non-Saudis.

The CMA said that as per the decision, foreign investment in these companies would be limited to shares of these Saudi companies listed on the capital market, as well as to convertible debt instruments, or both.

However, people without Saudi nationality would not be allowed to own more than 49% of shares of the companies involved. Strategic foreign investors, who are not permitted to own shares or convertible debt instruments in these companies, would be exempted from owning shares of these companies.

The new rules allow non-Saudi investors to benefit from the economic advantages of existing and future projects without violating the relevant laws, regulations, and instructions, particularly the Law of Real Estate Ownership and Investment by Non-Saudis, whether during the companies' operations or liquidation.

At the same time, CMA grants Saudi listed companies the right to acquire ownership, easement, or usufruct rights over properties allocated for their headquarters or branch offices within Makkah and Madinah.

This is contingent upon the property being fully utilized for this purpose and in accordance with the Exclusion Controls exemption regulations under the Law of Real Estate Ownership and Investment by Non-Saudis.

Real estate expert Ahmed Al-Faqih told Asharq Al-Awsat that the decision will benefit the overall Saudi real estate market, especially in Makkah and Madinah. It will attract more foreign investment, supporting Saudi Vision 2030's goals of boosting investments and reducing reliance on oil.

Al-Faqih expects the market to react positively, with more investors coming in. The decision’s impact will go beyond buying and selling properties to include changes in regulations and market innovations.

“We’ll see more capital flowing into the market, and development projects will transform the two cities into major construction hubs in the next five years, especially with their ongoing religious tourism during Hajj and Umrah,” said Al-Faqih.

He added that the decision targets Muslims worldwide who want to invest in the holy cities, as well as other investors.

“This long-awaited move is a sign that Saudi Arabia is close to allowing foreign investment in its real estate sector,” he noted.