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Written by: Admin Admin

Category: News

Published: 29 January 2025

Hits: 854

• Saudi Arabia
• Investment
• Mecca
• Medina

In a significant move to boost foreign investment and enhance market liquidity, the Saudi Capital Market Authority (CMA) has announced that foreign investors are now permitted to invest in Saudi companies listed on the Saudi stock exchange that own property within the holy cities of Mecca and Medina.

This decision, effective immediately, follows the approval of regulations that exempt these listed companies from the restrictions outlined in the Foreign Ownership of Real Estate Investment Regulations.

This landmark decision is expected to have a profound impact on the Saudi capital market. By allowing foreign investors to participate in companies with real estate assets in these holy cities, the CMA aims to:

• Stimulate Investment: Attract foreign capital, thereby increasing investment activity and overall market liquidity.
• Enhance Market Efficiency: Improve the efficiency and competitiveness of the Saudi capital market on both regional and international levels.
• Support Economic Growth: Contribute to the overall economic growth of Saudi Arabia by fostering development projects in Mecca and Medina.
• Increase Market Attractiveness: Position the Saudi capital market as a more attractive investment destination for both domestic and international investors.

The new regulations governing foreign investment in these companies outline specific guidelines:

• Investment Scope: Foreign investment will be restricted to shares of listed companies or convertible debt instruments, with a collective ownership limit of 49% for non-Saudi individuals and entities.
• Strategic Investor Exemption: Foreign strategic investors are exempt from this ownership limit.
• Real Estate Focus: The regulations specifically target companies with real estate assets within the boundaries of Mecca and Medina.

These regulations aim to provide a framework for foreign investors to participate in the economic growth associated with projects in these holy cities while ensuring compliance with existing laws and regulations related to foreign real estate ownership.

Furthermore, the regulations allow listed Saudi companies to acquire ownership, usufruct, or use rights over properties designated for their headquarters or branch offices within Mecca and Medina, provided these properties are solely used for this purpose and adhere to the relevant exceptions within the Foreign Ownership of Real Estate Regulations.

This latest move by the CMA builds upon a series of initiatives aimed at enhancing the accessibility and attractiveness of the Saudi capital market to foreign investors. These initiatives include:

• Direct Investment: Allowing resident foreign investors to directly invest in the Saudi stock market.
• Swap Agreements: Facilitating foreign investor access to the Saudi stock market through swap agreements.
• Foreign Financial Institution Investments: Permitting qualified foreign financial institutions to invest in listed securities.
• Strategic Investments: Allowing foreign strategic investors to acquire strategic stakes in listed companies.
• Direct Debt Investments: Enabling foreign investors to directly invest in debt instruments.

In 2021, the CMA further expanded foreign investor participation by allowing them to invest in real estate funds focused on properties within Mecca and Medina.

This move aimed to diversify financing channels within the capital market and align with the objectives of Saudi Vision 2030, which prioritizes attracting both domestic and foreign investment.

The final version of these regulations was developed following a public consultation process conducted on November 15, 2023. The consultation, conducted through the Istitalah platform (a unified electronic platform for public and government agency feedback) and the CMA's official website, sought public input on the "Regulations for Foreign Investors' Ownership of Shares in Saudi Listed Companies with Investment Properties in Mecca and Medina."

This significant regulatory change is expected to have a positive impact on the Saudi economy, attracting foreign capital and fostering economic growth within the holy cities of Mecca and Medina.

By creating a more inclusive and attractive investment environment, the CMA continues to play a crucial role in supporting the long-term development and diversification of the Saudi capital market.

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Written by: Admin Admin

Category: News

Published: 22 November 2024

Hits: 846

• Saudi Arabia
• EdfaPay

EdfaPay, a leading Saudi fintech platform, has successfully secured a $5 million pre-Series A funding round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.

This significant investment will fuel EdfaPay's growth ambitions and solidify its position as a key player in the MENA region's rapidly evolving fintech landscape.

Founded in 2022 by Ghormallah Alghamdi and Nedal Sabbah, EdfaPay is revolutionizing the way businesses accept payments. Its innovative SoftPOS technology transforms smartphones into powerful point-of-sale devices, eliminating the need for traditional hardware.

This user-friendly and cost-effective solution empowers small and medium-sized enterprises (SMEs) to streamline their operations and enhance their customer experience.

With this fresh infusion of capital, EdfaPay is poised to accelerate its growth trajectory in several key areas:

• Market Expansion: The company plans to expand its footprint across the MENA region, with a particular focus on Oman, where it aims to establish a strong presence and provide tailored payment solutions to local businesses.
  
  
• Product Innovation: EdfaPay will invest in research and development to enhance its existing product offerings and introduce new features and functionalities that cater to the evolving needs of its customers.
  
  
• Strategic Partnerships: The company will forge strategic partnerships with leading financial institutions, telecommunications providers, and other industry players to strengthen its market position and reach a wider audience.
  
  
• Talent Acquisition: EdfaPay will continue to attract top talent to its team, bolstering its technical capabilities and driving innovation.

"This funding round is a major milestone for EdfaPay," said Eng. Ghormallah Alghamdi, co-founder and CEO of EdfaPay. "With the support of our investors, we are well-positioned to revolutionize the payment landscape in the MENA region and beyond. Our goal is to empower businesses of all sizes, enabling them to thrive in the digital age."

EdfaPay's commitment to innovation, coupled with its strong leadership team and experienced investors, positions the company for continued success.
As the fintech industry continues to evolve, EdfaPay is at the forefront, driving digital transformation and empowering businesses across the region.

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Written by: Admin Admin

Category: News

Published: 18 October 2024

Hits: 1366

• Saudi Arabia
• investment opportunities

Saudi Arabia has taken a significant step towards enhancing its investment climate with the introduction of a new investment law. The law, which replaces the existing Foreign Investment Law, aims to create a more attractive environment for both domestic and foreign investors, driving economic development and job creation.

The new investment law, issued pursuant to Royal Decree No. (M/19), will come into effect on or around February 7, 2025. It introduces several key changes, including:

Equal Treatment: The law applies to both Saudi and foreign investors, ensuring a level playing field for all.

Simplified Registration: The cumbersome licensing process has been replaced with a streamlined registration procedure, making it easier for investors to set up businesses.

Investment Incentives: The government will offer various incentives and facilities to attract both local and foreign investments.

Dispute Resolution: Investors will have access to alternative dispute resolution mechanisms, such as arbitration and mediation.

Freedom of Investment: Foreign investors will enjoy a high level of freedom to invest in various economic activities, with limited exceptions.

The new law is expected to have a positive impact on Saudi Arabia's economy by attracting more foreign investment, creating jobs, and fostering innovation. It aligns with the Kingdom's Vision 2030, which aims to diversify the economy and reduce reliance on oil.

Key benefits of the new investment law include:

Increased Foreign Investment: The simplified registration process and favorable investment incentives will make Saudi Arabia more attractive to foreign investors.

Job Creation: New businesses and expanded operations will lead to increased job opportunities for Saudi citizens.

Economic Diversification: The law will contribute to the diversification of the Saudi economy, reducing its dependence on oil.

Improved Competitiveness: Saudi Arabia will become a more competitive investment destination, attracting a wider range of businesses and industries.

Enhanced Governance: The new law strengthens the legal framework for investment, providing greater clarity and certainty for investors.

As the law comes into effect, it will be crucial to monitor its implementation and address any challenges that may arise. However, the new investment regime represents a significant step forward in Saudi Arabia's efforts to become a global investment hub.

Additional considerations:

Executive Regulations: The detailed rules and procedures for implementing the new law will be outlined in the executive regulations, which are expected to be issued within 180 days of the law's publication.

Dispute Resolution: The availability of alternative dispute resolution mechanisms will provide investors with more efficient and cost-effective ways to resolve disputes.

Investment Incentives: The specific incentives offered to investors will depend on the nature of the investment and the sector involved.

National Security: Certain activities will remain reserved for Saudi nationals, ensuring national security interests are protected.

Overall, the new investment law is a positive development for Saudi Arabia and its economy. It demonstrates the Kingdom's commitment to creating a welcoming and supportive environment for investors.

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Written by: Admin Admin

Category: News

Published: 18 October 2024

Hits: 1239

• Saudi Arabia
• JARAS

JARAS Hospitality, a pioneering technology company dedicated to transforming the hospitality industry, has successfully closed a pre-Seed funding round of $666,000.

Led by a group of undisclosed angel investors, this investment will fuel JARAS's mission to provide innovative solutions that streamline hotel operations and elevate guest experiences.

Founded in 2023 by Ahmed Al Zubaidi, JARAS offers a comprehensive suite of hospitality management tools designed to simplify bookings, optimize pricing, and enhance operational efficiency.

The company's integrated platform empowers hotel managers with real-time insights, enabling them to make data-driven decisions and deliver exceptional service.

With this new funding, JARAS will focus on further refining its product offerings to meet the evolving needs of the hospitality market. The company plans to expand its customer base and solidify its position as a leading provider of innovative hospitality management solutions.

Key areas of focus for JARAS include:

• Product Development: Continuously refining and expanding the company's product suite to address the specific needs of hotels of all sizes.
• Customer Acquisition: Implementing targeted marketing strategies to attract new customers and expand JARAS's market reach.
• Strategic Partnerships: Collaborating with industry leaders to offer complementary services and enhance value for customers.
• Technology Innovation: Staying at the forefront of technological advancements to provide cutting-edge solutions.

"We are delighted to have secured this investment, which will enable us to accelerate our growth and deliver even greater value to our customers," said Ahmed Al Zubaidi, CEO of JARAS Hospitality. "Our goal is to revolutionize the way hotels operate by providing cutting-edge technology that improves efficiency, reduces costs, and enhances guest satisfaction."

JARAS's commitment to innovation and excellence has already made a significant impact on the hospitality industry.

By leveraging technology to streamline operations and improve guest experiences, JARAS is helping hotels to stay competitive in today's fast-paced market.