Indirect Real Estate Investment

Khalid Al-Dara'

It is well known that real estate investment is a well-established, deeply rooted, and relatively safe form of investment compared to other types of investments. Investments can be categorized by asset type into:

1- Direct investments.

2- Indirect investments.

In this article, we will discuss indirect investment

which takes three forms:

– Investing in real estate companies listed on Tadawul (the Saudi Stock Exchange)

– Investment in REITs approved and licensed by Tadawul, where these funds distribute returns from the real estate they own to shareholders, often on a regular basis (quarterly, semi-annual, or annual).

– Licensed real estate investment funds.

Indirect investments typically have several advantages, including:

They are low-cost investments, meaning you can invest with a very small amount.

Additionally, there are no administrative fees or similar costs, making them very suitable for those with low incomes.

Real Estate Brokerage and Marketing Specialist

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