Aljazira gains approval for Saudi property fund

Aljazira Capital has gained approval from the Saudi Arabian regulator to launch an exchange-listed real estate fund.

The Riyadh-based company has taken advantage of rules released by the regulator, the Capital Market Authority, last year.

The rules state that real estate investment traded funds, as they are described by the authority, must be closed-ended with a minimum fund size of 100 million Saudi riyals ($27 million). Similar funds in other markets are called real estate investment trusts (REITs).

The rules, which prohibit fund managers from investing in vacant land, are intended to address Saudi Arabia’s shortage of residential property.

The Aljazira Mawten (REIT) was approved on January 2. Aljazira Capital is owned by Bank Aljazira, which was formed in 1976 following the takeover of the Saudi Arabian branches of the National Bank of Pakistan.

©2017 funds global mena

Related Articles