The Saudi Capital Market Authority on Sunday approved the final version of the new regulations for Real Estate Investment Traded Funds (REIT), granting approval to foreign investors to trade in REITs on the Tadawul, according to the Saudi Gazette.

REITs are publicly traded real estate funds which invest in real estate projects that generate periodic income. As per the new regulations, funds will be obliged to distribute a percentage of their net profits to the unitholders at least once a year.

The regulations include the management, operation and ownership of the fund, with an obligation for the funds to not invest more than 25% of their assets outside the kingdom.

The instructions also put rules in place concerning the management of property, leasing contracts and the related operation of property.

The Saudi Capital Market Authority had previously released a draft of the new rules on its website for public review and comment.