(MENAFN) Alistithmar Capital, the investment arm of Saudi Investment Bank, has signed an agreement with Safa Investment Co. to launch several real estate funds in Saudi Arabia. The first fund is estimated to be worth USD292.9 million and will target the residential space in main cities with a particular focus on Riyadh. The funds aim to enhance the growth of invested capital through the acquisition of land in targeted geographical areas to develop high-quality residential complexes and sell them ready for habitation.
The cooperation between Alistithmar Capital and Safa Investment aims to support the Kingdom's growth in the real estate sector. According to the CEO of Alistithmar Capital, Khalid Al-Rayes, the partnership will open opportunities to achieve greater returns. The agreement aims to bridge the gap between demand and supply in the real estate market in all its sectors through projects that target strategic and vital areas in the most prominent neighborhoods in Riyadh and other cities.
Saudi Arabia's real estate sector is witnessing massive traction and development, with a huge increase in property values. Real estate prices in Saudi Arabia increased by 1.6 percent in the fourth quarter of 2022, compared to the same period in 2021, primarily driven by a rise in residential property values. The price of residential properties increased by 2.6 percent in the fourth quarter of 2022, mainly fueled by a 2.7 percent rise in land plot prices.
The new real estate funds are part of Saudi Arabia's strategy to diversify its economy and attract investments into the real estate sector. The Kingdom is planning to relax its property ownership laws for foreigners to facilitate this. The funds launched by Alistithmar Capital and Safa Investment will help support the Kingdom's growth in the real estate sector and bridge the gap between demand and supply in all sectors of the market.
In March, Alistithmar Capital received approval from the Capital Market Authority for its Alistithmar Capital Quarterly Dividend Fund. The investment firm is focused on delivering investment products and services that meet the needs of its clients and help them achieve their financial objectives. The new real estate funds are expected to enhance the growth of invested capital and increase returns for investors while supporting the Kingdom's growth in the real estate sector.
The cooperation between Alistithmar Capital and Safa Investment Co. will launch several real estate funds in Saudi Arabia, with the first estimated to be worth USD292.9 million. The funds will target the residential space in main cities with a particular focus on Riyadh, aiming to enhance the growth of invested capital through the acquisition of land in targeted geographical areas to develop high-quality residential complexes. The real estate sector in Saudi Arabia is witnessing massive traction and development, with a huge increase in property values. The new real estate funds are part of Saudi Arabia's strategy to diversify its economy and attract investments into the real estate sector.
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