The city of Madinah is rapidly transforming into a prime business and investment destination, fueled by a comprehensive strategy of massive development projects, infrastructure upgrades, and pivotal regulatory reforms. With over SAR200 billion committed across 224 initiatives, the region is strategically positioning itself as a cornerstone of Saudi Arabia’s Vision 2030, aiming to attract global capital and diversify its economy beyond traditional sectors.
A SAR200bn Development Pipeline
A recent report by the Madinah Chamber of Commerce and Industry detailed the immense scale of the region’s development. The 224 ongoing projects, spanning over 30 million square meters, represent a coordinated effort between government, semi-government, and private sector entities. The commercial sector leads this charge with 162 ventures, complemented by significant investments in mixed-use developments, healthcare, education, and tourism. This ambitious rollout is projected to create over 125,700 new jobs, bolstering the local economy and enhancing Madinah’s appeal as a place to live, work, and invest.
The Nine Pillars of Competitiveness
Madinah’s investment appeal is built on a framework of nine distinct competitive advantages. These include generous incentives for manufacturing and technology, multi-year tax exemptions, and full foreign-ownership rights across most sectors. The region’s infrastructure is a key asset, featuring multiple international airports serving over 11 million passengers annually, major commercial ports with a combined capacity of 35 million tonnes of goods, and the Haramain High-Speed Train. Furthermore, Madinah’s Industrial City, home to 540 factories, serves as a powerful engine for industrial growth and innovation.
Capital Market Reforms Unlocking Foreign Investment
A landmark move by Saudi Arabia’s Capital Market Authority (CMA) is set to significantly boost foreign investment. As of January 2025, foreign investors are permitted to hold up to 49% of shares in Saudi-listed companies that own real estate in the cities of Makkah and Madinah. This reform is designed to enhance market liquidity and channel international capital directly into the region’s key development initiatives. By opening up strategic real estate assets to a global investor pool, the Kingdom is creating a more accessible and dynamic financial marketplace aligned with international standards.
Strategic Synergy for a New Economic Era
The synergy between large-scale projects, attractive incentives, and capital market liberalisation forms a cohesive strategy that amplifies Madinah’s economic profile. The development projects provide tangible investment opportunities, the competitive advantages reduce barriers to entry, and the CMA’s reforms ensure capital can flow efficiently from across the globe. This integrated approach not only provides a clear path for foreign investors but also empowers local entrepreneurs and businesses to participate in and benefit from the region’s accelerated growth trajectory.
About Madinah Chamber of Commerce and Industry
The Madinah Chamber of Commerce and Industry is an official organization dedicated to representing and supporting the business community in the Madinah region. It plays a crucial role in fostering economic growth, promoting investment opportunities, and providing essential services and data to both local and international businesses looking to operate in the area.
Source: Gulf Business
