With demand for residential property increasing in the kingdom, this Sharia-compliant fund has been set up in response to a real estate market displaying very strong fundamentals.
EXPANSION PLANS
Called Al Dar Investment Fund, it will develop more than 1,500 residential units aimed at high- and medium-income buyers in Riyadh, the national capital. The fund has been set up by Jadwa in collaboration with Al Majdiah Group and Riyad Bank.
Jadwa is already a major player within Saudi Arabia. It currently manages assets worth 35 billion Saudi riyals, in the public market, private equity, property, private credit, and fixed income segments.
The fund has been launched in accordance with Saudi Arabia’s Vision 2030 programme of national economic and social transformation, which aims to increase home ownership among Saudi citizens to around 70%. The country has already exceeded its target of 60% home ownership by 2020, and the kingdom has big ambitions for its future growth.
The Saudi government intends to turn Riyadh into one of the top-ten urban economies in the world. Part of this strategy involves doubling Riyadh’s population of 7.5 million people by 2030.
EXPECTING BIG THINGS
The government is investing USD220 billion into this project and expects substantial contributions from the private sector. Al Dar Investment Fund is an important piece of this investment jigsaw puzzle.
The fund reflects a healthy real estate market ripe for investment and represents the confidence internal investors have in the country’s economy.
Jadwa's managing director Haitham Al Ghannam recognised the strength of the Saudi market, noting "the attractiveness of the local residential real estate market today, particularly in Riyadh”.
The launch of this property fund, which has already seen record demand during its offering period, will surely herald a much greater interest in the Saudi real estate market as the global economy begins to recover from COVID-19.
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