Saudi Arabia’s Jadwa Investment has reportedly launched a $266m fund to invest in Riyadh’s real estate market, hoping to develop more than 1,500 residential units through several apartment complexes, targeting mid- to high-income households, the UAE-based The National reports.
Jadwa, which has SAR 35 billion ($9.3 billion) of assets under management, has jointly launched the investment vehicle with Al Majdiah Group and Riyad Bank, The National said.
The closed-end three-year Shariah-compliant fund has the provision for two one-year extensions.
“The latest fund is in line with the company’s policy of pursuing “diversified investment opportunities across asset classes”, Tariq Al-Sudairy, Jadwa’s managing director and CEO said. “We have been very active in the local real estate market where we see strong investment fundamentals.”
According to the report in The National, the investment vehicle “is looking to capitalize on the growing demand for residential properties in the country. Increasing homeownership in Saudi Arabia is one of the central planks of Vision 2030, the kingdom’s economic and social transformation program. The country has exceeded its 2020 target of increasing the percentage of home ownership among Saudi citizens to 60 per cent. The government now aims to boost the ratio to 70 per cent by 2030.”
“The record demand shown during the fund’s offering period demonstrates the attractiveness of the local residential real estate market today, particularly in Riyadh, where we intend to expand further,” Haitham Al Ghannam, managing director and head of Real Estate at Jadwa, added.
Saudi Arabia’s residential market has been a key point of focus for government initiatives over recent years with a range of regulatory, finance and supply side reforms taken to support and stimulate the market.
In August, Saudi Arabia’s Public Investment Fund (PIF) said it had set up a new real estate subsidiary, called “Roshn,” to help meet increasing local demand for housing. The company will specialize in developing integrated urban neighborhoods containing residential communities with modern standards across the kingdom.
