More real estate funds imminent, says CMA Chief

The number of real estate investment funds in the Kingdom has so far reached 58 funds and there has been tremendous turnout among real estate developers and investors to float more funds, President of Saudi Capital Market Authority (CMA) Dr. Mohammed bin Abdulmalik Al-Sheikh said.
The CMA Chief’s statement came at the opening session of a forum on real estate investment funds in Riyadh Saturday which is being organized by the CMA. Dr. Abdulrahaman Al-Barrak, the CMA board member, delivered the message on behalf of the CMA Chief.
CMA efforts in developing real estate markets have been directed to upgrade the level of transparency, regulatory infrastructure and preserving rights of shareholders to invest in financial tools approved by the CMA, he said.
The CMA has finalized the issuance of most of executive regulations of real estate investment funds which are subject to amendments and changes from time to time, like many similar regulations, based on remarks made after application.
He said investment in real estate remains the favored mode of investment for many people and the sector has witnessed substantial growth in recent years to cope with economic growth and expansion of governmental spending on infrastructure projects.
The CMA has issued guidelines to regulate investments in this sector to avoid non-organized real estate investment which has had a negative impact on many citizens in a bid to streamline group investment on the real estate sector and allow investors, especially young and small categories, he said.
The regulations come to boost organized group investment in the real estate market through licensed companies subject to CMA control and governance rules. The regulations will also organize the work of real estate funds of similar products and open up cooperation avenues between fund managers, real estate investors and developers, he noted.
Meanwhile, a number of personalities working in real estate and asset management were honored including CEOs and the heads of KSB Capital Group, Riyad Capital, Saudi Faransi Capital, al-Rajhi Capital, al-Gezira Capital, Salman Saidan Group and Secretary General of the Riyadh Chamber of Commerce and Industry (RCCI). They jointly sponsored the event.
The forum is primarily aimed at building communal awareness of the concept of real estate funds, their objectives and their role in economic development and the promotion of savings in real estate investments together with the role of the CMA in working out guidelines and regulations in this field.