Real estate investment funds in Saudi arabia are regulated investment vehicles that pool capital from multiple investors to invest in a diversified portfolio of income-generating real estate assets. They are structured as closed-end funds or public investment funds. The Saudi Capital Market Authority (CMA) governs and regulates real estate investment funds in Saudi Arabia. The CMA has established specific rules and regulations to ensure transparency, investor protection, and proper governance of these funds. Real estate investment funds in Saudi Arabia can invest in various types of properties, including residential, commercial, industrial, and hospitality assets. The funds may also invest in real estate development projects, property management companies, and real estate-related securities.

The government of Saudi Arabia issued permission for foreigners to invest in real estate funds in the cities of Mecca and Medina. In a statement, the Saudi Arabian Capital Market Organization announced the issuance of a license to invest in real estate funds in the cities of Mecca and Medina for foreigners. Based on this, foreigners in this country can direct part or all of their capital in investment funds to the real estate fund of these two cities. From now on, foreigners can buy real estate in these two cities. It should be noted that Saudi Arabia, as the world's largest oil producer, wants to reduce its economic dependence on oil money by attracting foreign capital.

With the wise leadership of Prince Mohammed bin Salman, the country of Saudi Arabia has undergone significant social and economic transformations. The government of Saudi Arabia has devised many measures to diversify its non-oil economy and attract foreign investors. Due to the increase in economic activities in Saudi Arabia, the demand for affordable housing is also increasing. Another goal announced in Saudi Vision 2030 is to increase the number of homeowners among Saudi citizens to 70% in the next decade. The multiple and interconnected aspects of Saudi Arabia's evolution create an ideal environment for investing in the country's real estate and hospitality markets.

Real estate investment funds in Saudi Arabia offer several potential benefits to investors. They provide opportunities for diversification, professional management of real estate assets, liquidity through trading on the stock exchange, and the ability to invest in large-scale real estate projects that may not be feasible for individual investors. Real estate investment funds in Saudi Arabia may enjoy certain tax advantages. For instance, they may be exempt from corporate income tax if they distribute the required portion of their income to shareholders.

The average price of housing in Saudi Arabia is in the middle of the ranking table of the real estate index, so that the average price of housing in the city center of this country is 1,174 dollars per square meter, and the average price of housing outside the city is 864 dollars per square meter. Among all Asian countries, Saudi Arabia with a ratio of 2.79 is the first country where the purchasing power in this country is very high for buying a house.

Analysts predict that between 2019 and 2021, 70,000 residential units will be built in Riyadh and 25,000 in Jeddah. Housing prices in these two cities are also stabilizing. Experts believe that the increase in economic activity will stop the downward trend of housing prices in these two cities, and we can witness the improvement of the housing market in the medium and long term. The future of the real estate market promises long-term gains for those who invest in it now.

With the aim of promoting digital transformation in providing services to the public, Saudi Arabia's Public Investment Fund opened a national real estate registration service company called "Real Estate Registry". The fund announced on its website that the national company plans to develop and launch a real estate registry by creating an integrated digital platform that will help increase transparency and trust in real estate services and data in the Kingdom of Saudi Arabia.

The income generated from the underlying real estate assets is typically distributed to the investors in the form of dividends. Real estate investment funds in Saudi Arabia are required to distribute a significant portion of their income to shareholders, often in the range of 90% or more. Real estate investment funds in Saudi Arabia are accessible to both individual and institutional investors. Individuals can invest in these funds through brokerage firms or financial institutions, while institutional investors such as pension funds, insurance companies, and sovereign wealth funds can also participate.