The Alinma Retail REIT Fund is a closed-end public real estate investment trust (REIT) managed by Alinma Investment Company. Headquartered in Riyadh, the fund is listed on the Saudi Stock Exchange (Tadawul) and complies fully with Islamic Shariah regulations. Approved by the Capital Market Authority (CMA) in December 2017, the fund provides investors with access to income-generating real estate opportunities while supporting Saudi Arabia’s growing real estate sector.
Establishment and Regulatory Approval
The CMA approved the establishment of Alinma Retail REIT and its public unit offering on December 28, 2017. Its terms and conditions were first issued on March 7, 2018, and later updated on June 19, 2023 to align with evolving market standards and investor needs. The fund operates within Tadawul’s real estate – traded REITs sub-sector, ensuring strong regulatory oversight and transparency.
Objectives of Alinma Retail REIT
The primary objective of the fund is to invest in income-generating real estate assets located within Saudi Arabia. Its investment strategy follows strict guidelines:
- At least 75% of total assets must be allocated to developed, income-producing real estate.
- The fund is prohibited from investing in undeveloped land.
- It may allocate part of its portfolio to real estate development projects.
- At least 90% of net annual profits are distributed to investors, ensuring steady and predictable returns.
This approach combines income stability with long-term growth potential, making it an attractive choice for investors seeking Shariah-compliant real estate exposure.
Portfolio Assets
At inception, the fund’s portfolio included multiple Al-Makan Mall properties across Saudi Arabia:
- Al-Makan Mall – Riyadh
- Al-Makan Mall – Hafr al-Batin
- Al-Makan Mall – ad-Dawadimi
- Al-Makan Mall – Tabuk
These malls are strategically located retail centers designed to generate stable rental income from commercial tenants, strengthening the fund’s cash flow and investor distributions.
Alinma Investment Company
The fund manager, Alinma Investment Company, is a closed joint-stock Saudi company fully owned by Alinma Bank. Licensed by the CMA in 2009 and operational since 2010, Alinma Investment provides a wide range of financial services, including:
- Fund management and real estate investment management
- Advisory services and securities arrangements
- Custody services for client assets
- Innovative financial products in telecommunications and technology investments
All of its offerings are designed to be Shariah-compliant, ensuring alignment with both investor demand and Saudi financial regulations.
Conclusion
The Alinma Retail REIT plays a key role in Saudi Arabia’s expanding REIT market, offering investors a transparent, regulated, and Shariah-compliant investment vehicle. With its strong portfolio of retail malls, clear profit distribution policy, and professional management by Alinma Investment Company, the fund continues to provide both stability and growth opportunities in the Kingdom’s real estate sector.
