Swicorp launches Bawabat Makkah real estate fund

Swicorp Saudia Co. (Swicorp), a financial services group, has launched Swicorp Bawabat Makkah Real-estate Development Fund, a SAR 1.35 million public, closed-ended, sharia- compliant fund approved by the Saudi Capital Market Authority. 

The three-year fund is closed-ended, and is renewable for two year-long periods, the company said in a statement.

Subscription is open to Saudi citizens, companies and investment funds through Swicorp or designated branches of the Arab National Bank (ANB), with a minimum subscription of SAR 50,000 per investor.

The fund, which is looking to realize medium-term appreciation for investors, aims to develop a piece of land in Makkah and sell serviced residential and commercial land plots.

The project will be developed by Bawabat Makkah Co., a subsidiary of Al Balad Al Amin Company for Development and Urban Regeneration (ABAM), which is owned by the Saudi Government. ABAM is one of the main investors in the fund with an in-kind contribution of SAR 400 million.