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REITs 'driving market growth in Saudi Arabia'

RIYADH, April 25, 2018

The real estate investment trusts are the hottest products in Saudi Arabia right now, said industry experts amid a boom in REITs listings on the kingdom’s stock exchange.  

Since the Tadawul market was opened to REITs in 2016, there have been multiple listings in Saudi Arabia, as well as in the UAE and Bahrain. With new listings planned this year – including the possibility of a REIT from Kingdom Holding Company – investors within the kingdom and globally are watching this sector closely, said leading experts ahead of a major industry event.

The Euromoney Saudi Arabia Conference will be held from May 2 to 3 attracting high-profile speakers from Capital Market Authority, Knight Frank and Equitativa Group besides Amlak International, Rafal Real Estate Development Company and Colliers International.

The Euromoney Saudi Arabia Conference hosted a sell-out REITs briefing as a pre-conference event last year to introduce delegates to the sector, and this year’s briefing, on May 1, will examine the impressive growth over the past 12 months, said the organisers.

“REITs are the hottest products in Saudi Arabia right now, and many delegates will be keen to gain insights into the best approach to investing in them,” remarked Victoria Behn, Euromoney Conference’s Head of Middle East and Africa.

“The briefing will provide a focused morning of presentations, discussions and networking, enabling attendees to share ideas and information with some of the leading players in this space operating in the Kingdom,” she stated.

The boom in the REITs listed on Saudi Arabia’s stock exchange will be explored at an exclusive executive briefing ahead of the event.

The panelists will consider milestones in the market’s expansion, challenges it has faced and how it might be improved, said Behn.

They will also offer a forecast of how REITs will perform moving forwards, and draw comparisons with the ones in other jurisdictions, including the UAE, she stated.

Stefan Burch, Partner – General Manager, Saudi Arabia at Knight Frank, will introduce the first session, which will provide an overview of the sector’s expansion over the past two years. It will be presented by Burch’s colleague Taimur Khan, Senior Analyst in Development Consultancy and Research at the real estate giant.

Also giving their presentations will be two representatives of the Saudi Capital Market Authority - Abdulrahman Abdulaziz Almashal and Hassan Abdullah Alshuaiby, both from the investment products issuance department. The duo will shed light on regulatory changes and other plans that affect the REITs sector.

The event will end with an interactive panel discussion looking at challenges and opportunities for 2018, said Behn.
"Examining specific needs and how they will be met, it will cover topics such as valuation processes, asset management and the relative merits of developments versus acquisitions. Investor needs such as Waqf – an inalienable charitable endowment under Shariah law – will be on the agenda, as will net asset value discounts and premiums," she added.-TradeArabia News Service

Tags: Saudi Arabia | CMA | Real estate trust |

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