The Saudi Stock Exchange (Tadawul) on Sunday held the listing ceremony for the first Real Estate Investment Traded Fund (REIT) with Riyadh REIT, Zawya reported.

Riyadh REIT is the first of many REITs set to be launched on the Tadawul after new instructions allowed their formation and trade on the exchange.

At the end of October, the Saudi Capital Market Authority approved regulations for REITs with instructions including an obligation for the funds to not invest more than 25% of its capital outside of the kingdom and to distribute at least 90% of its net incomes to its shareholders.

The funds traded at Tadawul are also obliged to invest 75% of its asset value into constructed developed real estate to generate periodic, rental income.