REITs constitute 34% of total Saudi funds with SAR 192B: Official

The REITs dominate 34% of the total size of funds in Saudi Arabia, with SAR 192 billion, Al Eqtisadiah newspaper reported, citing Fahad bin Hamdan, Assistant Deputy, Financing, and Investment at the Capital Market Authority (CMA).

REITs dominated nearly 18% of the total funds previously, and this percentage increased over the past 10 years.

The multiple real estate financing products offered by the CMA boosted the REITs size, said.

There are several products stimulating the real estate sector, including Tawarruq that aims to convert mortgage loans to securities. This boosts the financing entities' ability to serve real estate developers through offering them mortgages in line with their project plans.