The Saudi Capital Market Authority (CMA), has approved NCB Capital’s request to offer, register and list units of the AlAhli REIT Fund (1) on the Saudi Stock Exchange (Tadawul), the market regulator said in a statement.
The sharia-compliant Real Estate Investment Traded Fund (REIT) has a capital of SAR 1.375 billion.
It will invest in developed, ready-to-use, income-generating real estate assets, including the Alandalus Mall and its adjacent hotel, the Staybridge Suites, located in Jeddah.
The REIT aims to distribute semi-annual cash dividends of at least 90 percent of its annual net profit to investors.
The fund will offer 41.25 million units to retail investors in an initial public offering (IPO) at a minimum subscription of SAR 10,000 per unit.
Alandalus Property Company in April inked a memorandum of understanding (MoU) with NCB Capital to set up a Real Estate Investment Traded Fund (REIT) in which Alandalus would hold the majority stake.
Last year, the CMA approved a request by Riyad Capital to register and list its REIT as the first real estate investment traded fund in the market.
Five other REITs have also been listed on Tadawul: Aljazira Mawten REIT in January, Jadwa REIT Al-Haramain Fund in April, Taleem REIT in May, AlMa’athar REIT in August, and Musharaka REIT last month.
Tadawul started listing REITs last year in a move that could potentially enhance transparency in the property sector and ease the Kingdom’s housing shortage.
The new funds will allow investors to access the local real estate market through purchasing existing, developed property.
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AlAhli REIT (1) Profile |
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Fund |
AlAhli Real Estate Investment Traded REIT(1) Fund, shariah compliant REIT |
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Investment Purposes |
Investing in income-generating, developed real estate assets |
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Fund Size |
SAR 1.375 bln |
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Number of IPO units |
41.25 mln units |
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Minimum Subscription Limit |
SAR 10,000 |
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Cash Dividend |
Cash dividend for unit holders of not less than 90% of the fund’s net profit, twice a year |
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