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Mohammed ElKuwaiz outlined key developments in the capital market financing ecosystem for the Kingdom’s real estate sector Real estate investment funds, both public and private, now represent a significant 25 percent of assets under management in Saudi Arabia, with a total value of 1 trillion Saudi riyals, said Mohammed ElKuwaiz, Chairman of the Capital Market Authority (CMA). Speaking at the Real Estate Future Forum 2025 on Monday, he said the sector saw a 20-23 percent growth in assets last year. These funds include both Real Estate Investment Traded Funds (REITs), listed on the Saudi stock exchange, and private real estate funds. During a panel discussion (conducted in Arabic), ElKuwaiz outlined key developments in the capital market’s financing ecosystem for the Kingdom’s real estate sector. Real Estate Contributions The CMA chief highlighted the upcoming launch of the first certificates for Real Estate Contributions, an investment technique that enables stakeholders to collectively own shares in a property, which is then developed and sold for profit. “The first share certificates for Real Estate Contributions approved by Real Estate General Authority (REGA) will be launched in coming weeks,” he said. Initial Public Offerings (IPOs) ElKuwaiz said the CMA currently has 55 IPO files under review for the financial market, with 20 percent originating from real estate companies. Debt Market He also added that the Authority has established a robust sukuk and bonds financing ecosystem, enabling real estate developers to select appropriate financial products to meet their project needs. “Last year, funds raised in debt market was more than in the share market,” he disclosed. During the discussion, ElKuwaiz confirmed that effective Monday, foreigners are allowed to invest in Saudi listed companies that own real estate within the boundaries of the cities of Makkah and Madinah. Earlier in 2021, the CMA had allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah. In a related press statement, CMA outlined various steps taken to facilitate foreign investment in the Saudi capital market including direct investment for foreign residents, market access via swap agreements, investment by qualified foreign institutions, strategic stake acquisitions in listed companies, and direct investment in debt instruments. These initiatives provide diverse funding options for projects in Makkah and Madinah, it said. |
