Real estate funds worth $7bn boost Saudi market
Jeddah, August 13, 2014
A total of 85 real estate funds with total assets valued at SR25.5 billion ($6.8 billion) were operating in Saudi Arabia by the end of 2013, a report said.
All public real estate funds achieved a positive performance during the year, with an average performance of 13.6 per cent, added the report in the Saudi Gazette, citing a study by the Capital Market Authority (CMA).
“Positive synergy must be reached between the private sector, real estate development companies and institutions and the programmes suggested by the governmental sector to provide effective and short- and long-term housing solutions," Majed Al Hogail, managing director, Rafal Real Estate Development Co, was quoted as saying in the report.
"During the next five years the real estate market in the Kingdom will witness an increase in activity," the report said, adding that the 8th Development Plan indicates a growth in the real estate activity at an annual average rate of 5.8 percent, and an increase in GDP contribution.