UAE’s Shuaa to launch REIT in Saudi Arabia by year-end: CEO

Dubai-listed Shuaa Capital is planning to set up a real estate investment traded fund (REIT fund) in Saudi Arabia by the end of this year, Fawad Khan, the company’s chief executive, told UAE-based Al-Bayan newspaper.

The company is in final stages to complete the procedures required for launching and listing the fund on the Saudi Stock Exchange (Tadawul), Khan said, adding that more details will be disclosed soon.

In October 2017, Omar Al Jaroudi, Shuaa Capital Saudi Arabia’s chief executive, unveiled plans for launching a new REIT in the Kingdom, with capital between SAR 500-700 million.

Meanwhile, Khan added that Shuaa Capital will invite bids for a new skyscraper in Dubai. The project cost is estimated at AED 1 billion.

The company’s third hotel project in Dammam will be delivered within three or four months, along with another residential development in Riyadh, which is expected to be finalized by 2020.

Shuaa Capital is finalizing the paperwork required for setting up a new holding company in Cairo, as part of its acquisition plan.

Meanwhile, Khan ruled out any negative impact from Shuaa’s exposure to Abraaj, adding that exits from non-core investments generated up to AED 100 million in proceeds.