Rasmala still looking at launching Saudi realty fund

Rasmala Investments, a Dubai-based investment-banking group, has confirmed it is still looking launching a real estate market, targeting the Saudi real estate market, 'Emirates 24/7' can reveal.

“We have not launched the previously announced Saudi real estate fund although we continue to study the opportunity,” a company spokesperson said.

This website had reported in June 2010, Rasmala was planning to launch a closed-end real estate fund in the range of $75 million (Dh275.25m) and $100 million, targeting mid-end residential developments in Saudi Arabia.

Asked if the company was looking at launching any UAE specific fund, the spokesperson that they currently had no plans for a UAE or Mena real estate fund.

US-based research company, RNCOS has said that Saudi Arabia will need to construct over one million houses by 2014, while Banque Saudi Fransi predicts developers will need to build about 275,000 units a year through 2015 to meet demand for about 1.65 million new homes.

In March, Saudi government pledged to spend $67 billion on 500,000 new homes and raised the value of mortgages provided by the Real Estate Development Fund to 500,000 riyals ($133,000) from 300,000 riyals. In addition, the country’s Shura Council has approved a much anticipated mortgage law.

Earlier this year, a report from CB Richard Ellis revealed residential property prices have increased by as much as 60 per cent in the first half of 2011.

Follow Emirates 24|7 on Google News.