Riyadh: Saudi Arabia's Capital Market Authority (CMA) is currently examining 20 requests to set up real estate investment funds in various regions of the kingdom.
"Getting a green signal from the market regulator would further boost the buoyant real estate sector in the Eastern Province and other regions of the Kingdom," said Khalid Al Dossary, a prominent economic expert.
Al Dossary said the funds could play a vital role in accelerating the ongoing economic boom if they were established in a way protecting the rights of shareholders.
Al Dossary, who is also an economic consultant in the Eastern Province, said CMA will monitor to ensure that their functioning are legal and their accounts are governed by its regulations.
Objections
He noted that some real estate dealers used to object to these regulations in the beginning. "However, in the long run, they were happy with the great advantages brought about by these regulations," he said while stressing the need for more real estate development companies in the region in addition to the existing six companies, keeping pace with the ongoing boom in the real estate, investment and industrial sectors.
"The volume of capital for the establishment of real estate companies in the region exceeded 500 million Saudi riyals [Dh489.5 million]," he said.
Al Dossary noted that the inflow of foreign capital in the real estate sector would accelerate the growth of the Saudi economy.
"This results in formation of giant business consortia, consisting of Saudi and international companies," he said.
