By: Aseel bin Taleb

Riyadh – Mubasher: MaCeen Capital is planning to establish a real estate fund with a capital of SAR 1.2 billion, said chairman Badr Al Hammad on Wednesday.

Speaking on the sidelines of the Euromoney conference, Al Hammad told Mubasher that MaCeen Capital is committed to refinancing projects.

"We are currently working on preparing a project that we will present before the Saudi Capital Market Authority (CMA) for approval soon," he added.

Refinancing firms will provide major benefit to the real estate market, the chairman noted.

Developed properties will not be subject to the white land tax; however, they will be subject to a different kind of tax, the top official revealed.

MaCeen Capital views the real estate investment sector as one of the largest and most promising sectors in the Kingdom, Al Hammad added, noting that he expects KSA's property markets to see significant growth in the near future.

The white land tax is 2.5% tax applied to undeveloped residential and residential/commercial plots in the Kingdom's urban boundaries.

The value of real estate projects currently under construction amounts to SAR 1.87 trillion ($500 billion).

Translated by: Nada Adel Sobhi