The February event, which used to be part of the European Tour but has since moved to the Asian Tour, has already confirmed a field of high profile names, including Bryson DeChambeau and Phil Mickelson.
However, the PGA Tour has yet to grant members waivers due to a schedule conflict — the AT&T Pebble Beach Pro-Am will take place on the same weekend.
Those who play in Saudi Arabia without a waiver could be fined, but McIlroy, who will not participate in Jeddah, says he has no problem with players making money in other ways.
“In my opinion, I think the Tour should allow releases. It’s an Asian Tour event, it’s an event with official golf world rankings,” McIlroy said per Reuters.
“I can see reasons why they wouldn’t grant a release, but I think if they try to do what’s best for their members, and their members go somewhere other than the PGA Tour and make that money, I mean, we are independent contractors, and I think we should be able to do that.
“I should be able to play wherever I want if I have the necessary qualifications and qualify.
“I would say most players on tour would have the same opinion as me.”
The event will be held at the Royal Greens Golf and Country Club, near Jeddah, and kicks off on February 3.
Organizers hope the tournament will usher in a new era of golf in the region.