Saudi NCB launches local investment fund
The National Commercial Bank (NCB) has launched the Al-Ahli Real Estate Income Fund with assets investment of 345 million Saudi riyals ($91 million) in the Saudi real estate market.
The fund is classified by the bank as a local investment support project with a full capital investment within the local market to purchase residential and commercial properties leased to high credit companies in the cities of Riyadh, Jubail and Yanbu, reported a press release.
The investment fund has been established in collaboration with the Al-Zakri Real Estate Construction Group. NCB forecasts indicate that the economic recovery in the industrial cities, together with the population growth in the Kingdom, will result in an increase in real estate value and growth of local liquidity that will provide a good stimulus to the success of the fund which is categorized as medium to long term investment.
“This fund will provide a return on investment that is competitive with what is available in the Saudi real estate income market, with an expected net profit of 6.1 percent annually with a possibility of providing capital gains through real estate properties liquidation at the end of the fund term, which is six years and a half,” said NCB General Manager, Abdulhadi Shayef. “The fund will also provide semi-annual cash flow not exceeding 20 percent of each investor's subscription."
“The fund has been approved by Shariah Advisory Committee and invests in accordance with Islamic Shariah Investment Principles, with minimum subscription of SR 100,000,” added Shayef. — (menareport.com)
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