As part of the Capital Market Authority's (“CMA”) approved Strategic Plan for the period (2015-2019) and as a continuation to the CMA’s efforts to develop the capital market as well as to introduce new investment instruments, and in line with the National Transformation Program and Saudi Arabia’s Vision 2030, and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424 H, the CMA Board has issued its Resolution dated 23/1/1438H corresponding to 24/10/2016G that includes the adoption and publication of the Real Estate Investment Traded Funds Instructions.
It is important to mention that these Instructions aim to regulate offering of Real Estate Investment Traded Funds that has a primary investment objective to invest in construction developed real estates that generate periodic income, and distribute a prescriptive percentage of the fund's net income in cash to the unitholders. When preparing these instructions, international best practices and standards have been taken into consideration in order to achieve the desired goals.
The Instructions can be viewed via the following link:
