Media ININ Economy We Trust
Riyadh January 23, 2024 SPA
His Excellency the Chairman of the Board of the Capital Market Authority, Mr. Mohammed bin Abdullah Al-Quwaiz, confirmed that there are large financing requirements to transform ambition in the real estate sector into reality, especially in light of housing programs, ambitious plans for ownership, and major projects. His Excellency said during his participation in the ministerial session of the Future of Real Estate Forum held in Riyadh: “Some believe that real estate financing through the financial market is limited to offering and capital increases, but the truth is completely different because the offering and capital increases constitute less than 10% of the financing coming through the market.” Finance, while the largest percentage of financing comes from real estate funds, which today have become one of the most important sources of financing the real estate sector in the Kingdom.” He pointed out that REIT funds are one of the various real estate products and funds currently available in the market, in addition to real estate income funds, real estate development funds, closed-end traded funds, and other real estate funds distributed by fund distribution platforms. His Excellency stated that there is a great opportunity for the real estate sector, not only in expanding financing sources, but also in expanding various types of financing, whether through offering and listing in the financial market, or benefiting from debt markets. He explained that the volume of assets managed in the real estate funds sector today amounts to about 170 billion riyals by the end of the third quarter of 2023, which constitutes a third of the assets managed in the financial market, which confirms the rapid growth in the real estate financing sector across the financial market.
