Madinah Attracts Foreign Investors, Becoming Saudi Arabia’s Next Investment Hub

A report from the Madinah Chamber of Commerce and Industry highlighted about 224 ongoing development projects, of which 15 are government-led, 10 are semi-government, and 199 are private-sector ventures.

The city of Madinah in Saudi Arabia is quickly becoming a hub for foreign investment.

This is due to development projects, infrastructure expansions, and regulatory changes that are attracting international investors. These moves show both Madinah’s local ambition and the broader goals of Saudi Vision 2030, which aims to diversify the economy, boost economic growth, and increase private sector participation.

A report from the Madinah Chamber of Commerce and Industry highlighted about 224 ongoing development projects, of which 15 are government-led, 10 are semi-government, and 199 are private-sector ventures. These projects are expected to create 125,722 new jobs, helping lower unemployment and boosting the role of Saudi talent in economic growth. The scale of these development projects offers opportunities for businesses and increases Madinah’s appeal as an investment hub and an attractive place to live and visit.

They gained advantages such as investment incentives for manufacturing and tourism, advanced technologies, multiple tax exemptions, the right to foreign ownership in many industries, and simplified regional licensing through a unified investment system.

The region is rich with mineral resources and agricultural lands. Infrastructure is another strength. It has several international airports, such as Prince Mohammad bin Abdulaziz International Airport in Madinah, AlUla International Airport, and Prince Abdul Mohsen bin Abdulaziz Airport in Yanbu, which serves 11 million passengers annually.

It also has major ports, including Yanbu Commercial Port and King Fahd Industrial Port, as well as high-speed rail, such as the Haramain line, which transports more than 1.5 million passengers each year.

Another major asset is Madinah Industrial City. It has 10 million square meters and houses 540 factories, making it a central hub for industry and investment.

In January 2025, the Capital Market Authority (CMA) announced that foreign investors can invest in Saudi-listed companies that have real estate in Makkah and Madinah. This makes it attractive for institutional investors to invest in development projects, increasing liquidity and making the capital market more appealing.

Under the new rules, non-Saudis can hold up to 49% of shares in real estate holdings in Makkah or Madinah. These regulatory adjustments opened the Saudi market to resident foreign investors, swap agreements, qualified foreign institutions, and direct debt investments, which were aimed at making the financial system more accessible and globally integrated.

The development projects, competitive incentives, and capital market liberalization increase Madinah’s economic profile. The projects, ranging from commercial, tourism, residential, education, and health, are tangible opportunities for foreign investors.

These projects open new opportunities for industries from construction and real estate to hospitality, manufacturing, logistics, and technology. Madinah has lowered barriers for foreign investors to enter by offering full ownership rights, tax breaks, streamlined licensing, and access through Saudi-listed companies.

This project will support Madinah’s key objectives, including job creation with over 125,000 new roles, urban development, sector diversification, and greater private-sector involvement. For residents and visitors, it will lead to better infrastructure and a more dynamic urban environment.

Moreover, while foreign investment rules have been liberalised, integrating international capital with local labour markets, regulations, and cultural considerations remains essential for sustainable progress. It’s also important to note that real estate reforms apply only to listed companies, so many investment opportunities will still rely on domestic channels or new structures to attract foreign interest.

In summary, Madinah is reinventing its economic identity through a massive pipeline of development projects and strong incentives to bring in global investors as the region aims to position itself as a leading economic hub in Saudi Arabia.