The Saudi Real Estate Income Fund launched on January 23, the Saudi Gazette reports.

AlKhabeer Capital unveiled their realty fund, a close-ended private fund that will invest in income-generating residential properties in the Kingdom of Saudi Arabia.

“We, at Alkhabeer, are keen to deliver income-generating opportunities with high-profile tenants to contribute to achieving the Fund’s objectives,” said Ahmed Ghouth, CEO of Alkhabeer Capital.

“The cumulative demand for residential compounds in Riyadh is expected to reach around 48,000 units by the end of 2019. Due to this growing demand, the residential compound sector presents a very strong upside potential over the long term,” he elaborated.

The Shariah-compliant Fund is offered as a private placement in line with the Capital Market Authority’s Investment Fund Regulations. The Fund’s primary objective is to generate returns from the rental income of a portfolio of residential compounds for families and individuals in Riyadh.