Real Estate investment in Saudi Arabia under regulations KSA authority
The Kingdom of Saudi Arabia (KSA) is the largest economy in the Arab world, accounting for 25% of its GDP. Revenues from the oil sector serve as the foundation of the Kingdom’s economy. The state exercises significant control over key economic activities. Saudi Arabia possesses around 25% of the world’s oil reserves and plays a leading role in the Organization of the Petroleum Exporting Countries (OPEC).
The Kingdom is the largest free economic market in the Middle East and North Africa (MENA) region, a key member of the Gulf Cooperation Council (GCC), and has agreements with the Greater Arab Free Trade Area (GAFTA), the European Free Trade Association (EFTA), and Singapore.
Saudi Arabia boasts the largest economy and population in the Gulf region. With 50% of Saudis under 25 years of age, the country also has one of the world’s fastest-growing populations. Significant investments are required to meet the needs of the growing population.
As part of its ambitious socio-economic reforms known as “Vision 2030,” the Saudi Arabian government actively attracts foreign investments to promote economic development, transfer foreign expertise and technology, create job opportunities for citizens, and increase non-oil exports.
All of this contributes to the growth of foreign investment across various economic sectors, with priority given to the chemical industry, transportation and logistics, information and communication technology, healthcare and life sciences, water resource and waste management, energy, education, tourism, entertainment and sports, real estate, financial services, mining, and metallurgy.
Saudi officials have also expressed their intention to attract foreign small and medium-sized enterprises to facilitate and stimulate the growth of the small and medium-sized business sector. Saudi Arabia’s fiscal policy generally promotes the free flow of private capital, with funds being freely transferable in and out of the Kingdom without restrictions.
Regulated Investment Fund
Realia Family Office offers its clients participation in the regulated investment fund, Midas East Wind Fund (Feeder Fund), which invests capital in the construction of the most significant residential and commercial real estate projects under the patronage of the ruling dynasty and Prince Salman bin Abdulaziz Al Saud.
The fund structure and management company, formed in Abu Dhabi Global Market, ensure the safety of investors’ funds. The fund’s activities in Saudi Arabia are regulated by the Saudi Arabian government, Saudi Arabia Monetary Authority (SAMA), and Capital Market Authority (CMA). Investment horizon: 2-3 years or more.
Midas East Wind Fund is designed to invest capital from HNWIs, family offices, and institutional investors in promising real estate sectors in the Kingdom of Saudi Arabia. The project’s investment goals include capital preservation, growth, stable current income, and protection against inflation.
During the initial stage, investments are made in ongoing development projects involving local investment funds, with a subsequent exit strategy through the sale of units by developers in the local market. Priority directions include affordable and business-class residential and hotel real estate, co-living, as well as premium segments.
IRR (Internal Rate of Return) – equity 20-25% unlevered
More detailed information is available upon request.
Entry Parameters: Existing construction permits, remodeling/reconstruction permits, or advanced project stages. Land ownership (freehold) or long-term leasehold (> 85 years).
Minimum Own Investments: From £0.50 million. Collective or individual.
Exit Product: Apartments, maisonettes, townhouses, homes, hotels.
Investment Structure
Within the structure of Midas East Wind Fund, we have established relationships with regulated local investment funds, working through their platforms and licenses. This format allows for the creation of an investment platform for Russian investors, enabling efficient construction of flexible financing schemes, optimizing them according to investor parameters.
Individual investors are expected to provide investments in the form of equity, loans, and hybrid forms (mezzanine) both directly into projects (SPVs) and through investment funds. Investment funds will invest in projects through SPVs, primarily in the form of equity, loans, and hybrid forms (mezzanine).
Organizational and legal structure is available upon request.