Description

The Muscat Capital - Al Masha'ar REIT Fund, known as SICO Saudi REIT Fund, functions as a Sharia-compliant, closed-ended real estate investment trust that is actively traded. It strictly adheres to the Real Estate Investment Funds Regulations and REIT Instructions stipulated by the Capital Market Authority (CMA). The core objective of this Fund is to generate consistent income for its investors. The Fund's investment strategy primarily focuses on Saudi Arabian real estate. At least 55% of its total asset value, based on the most recent audited financial statements, is dedicated to income-generating properties and development ventures within Makkah and Madinah. The remaining 45% is allocated to income-producing real estate located elsewhere in Saudi Arabia. Although its main geographical emphasis is the Kingdom, the Fund has the flexibility to invest up to 25% of its total assets in properties situated outside Saudi Arabia. While predominantly investing in developed and ready-to-use real estate assets, the Fund may also engage in viable real estate development projects intended to boost unit value, with the strict exclusion of 'white land' (undeveloped plots). Other permissible investments include the refurbishment and redevelopment of existing assets, property repurchase arrangements, usufruct rights, Islamic deposits, and units of CMA-authorized investment funds. Furthermore, it can acquire shares of Sharia-compliant real estate companies listed on Tadawul, provided that the total exposure to these investment fund units and real estate company shares does not exceed 25% of the Fund's total assets. The Fund Manager plans to distribute at least 90% of the net profit as an annual cash dividend, paid semi-annually in January and July. Capital gains resulting from the sale of real estate assets and other investments are not included in this distribution and may instead be reinvested in other properties, as determined by the Fund's Board of Directors.