Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) will list multiple Real Estate Investment Traded Funds “REITs” before the end of 2016.
REITs allow easy access to the Saudi real estate market for all types of investors through ownership of constructed developed real estate qualified to generate periodic and rental income, according to a bourse filing on Tuesday.
As per the Capital Market Authority (CMA) instructions announced on 30 October, REITs are prohibited from investing in vacant lands, and will be required to distribute at least 90% of the fund’s net profits to the unit holders annually.
Tadawul noted that it will establish an independent sector for REITs on its current equity market, where investors may buy and sell units of the fund via the same mechanism currently used for equities.
"This milestone comes in alignment with the Kingdom’s Vision 2030, and Tadawul’s strategic roadmap aiming to provide a wide range of investment tools in addition to equities and bonds; which will in turn diversify investment opportunities available for investors," the statement said.
