The Capital Market Authority (CMA), represented by the Deputy for Listed Companies & Investment Products in collaboration with the General Authority of Zakat & Tax (GAZT), held a workshop titled "The Mechanism of Zakat Calculation and Zakat for Tradable Real Estate Investment Funds", on Wednesday, 3rd of July, 2019 in Riyadh. The workshop was part of CMA's efforts to reach out to participants in the capital market and raise awareness of the mechanism for calculating Zakat of tradable real estate investment funds (REITs).
Mr. Abdullah Bin Ghannam, CMA Deputy for Listed Companies & Investment Products, explained that placing tradable real estate investment funds under Zakat is an optional decision for the Fund Manager. However, upon submitting to GAZT, the Fund Manager is obliged to provide declarations submitted to GAZT. Moreover, the Fund Manager has no right to stop cease complying with GAZT after the registration.
The workshop, which was attended by managers of real estate investment funds, financial managers and external auditors of the funds, focused on reviewing the mechanism for calculating Zakat by GAZT, as well as the mechanism for calculating Zakat on tradable real estate investment funds and their impact on returns. During the workshop, participants' comments and suggestions were discussed and their questions were answered. Moreover, the pre-requisites and requirements from Fund Managers wanting to register with GAZT were clarified and explained.
