As efforts in attracting private investors in to the housing department, Saudi Arabia drafted rules for exchange-listed real estate funds, reported The National.
Saudi Arabia plans to build 1.5 million homes over the next seven or eight years to increase the number of affordable housing, despite low oil prices, which will cause Riyadh to struggle in financing construction with only money provided from government.
Therefore, authorities are drafting the law to allow for funding from private sector as a resolution.
The Capital Market Authority stated that it is issuing the draft under the name of the “Real estate traded funds” and will be awaiting feedback on August 23rd before publishing a final draft of the regulations.
The draft discusses the potentiality of investing in residential, commercial, industrial, agriculture and real estate, according to Arabian Business.