Jeddah-based asset manager Alkhabeer Capital has launched a real estate fund that will invest in residential property in Riyadh, the Saudi capital.
The Saudi Real Estate Income Fund I is a private, closed-ended fund that aims to generate returns from a portfolio of residential compounds.
“The cumulative demand for residential compounds in Riyadh is expected to reach around 48,000 units by the end of 2019,” said Ahmed Ghouth, chief executive. “Due to this growing demand, the residential compound sector presents a very strong upside potential over the long term.”
The Saudi authorities have recently sought to stimulate investment in real estate to meet the kingdom’s shortage of residential accommodation. The government has stated the aim of building 1.5 million homes in the next seven years.
The country’s regulator, the Capital Market Authority, recently gave approval for exchange-listed real estate funds in an effort to boost investment in the sector.
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