Real Estate Sector
Mulkia Gulf Real Estate REIT
BUILDING THE FUTURE
Mulkia Gulf Real Estate REIT is a Shariah-compliant closed publicly traded real estate investment fund, established according to the laws and regulations of Saudi Arabia and regulated by the Capital Market Authority. The fund aims to invest in income-generating assets in the Kingdom and to distribute at least 90 percent of the revenue annually.
It is among the pioneers of Saudi Arabia’s REIT market that witnessed huge investor demand with 20 times coverage during its initial public offering period in 2017, reflecting investor trust and high appetite. REITs are growing in popularity because they combine the benefits of investing in real estate and the ability to liquidate or increase the investment at any time. Because of these advantages, the company anticipates that a growing number of investors will be drawn to REITs in the coming years.
Mulkia REIT manages 10 real estate assets providing diversification across industries and geographies. It is helping Saudi Arabia to achieve the goals of Vision 2030 by offering a liquid investment to encourage small investors to save money, one of the key goals of the strategy.
Mulkia REIT is managed by Mulkia Investment Company, led by Managing Director Sultan Mohammed Alhudaithi and Chief Executive Officer Omar bin Abdulkarim AlOthaim with Asset Under Management about four billion Riyal.
10Real estate assets owned
About the fund:
- Targeted dividends quarterly to distributed profits on unitholders must not be less than 90 percent of the fund’s net profits annually (every three months).
- Real estate distributed in several sectors such as commercial, residential, offices, and hospitality.
- Distributed in several geographic regions, including Riyadh, Dammam, Jeddah, and Khamis Mushait.
- Real estate insured against risks.
- Lease contracts extend for several years with a number of large companies.
- Assets of the fund are evaluated two times a year by two independent evaluators.