The success of launching the “Musharaka REIT Fund” with a coverage rate of 1021% and a number of subscribers exceeding 12 thousand subscribers

Musharaka Capital successfully completed the offering of its “Musharaka REIT Fund,” with the subscription period running from July 25, 2017, to August 3, 2017. The fund, valued at SAR 880 million, achieved an oversubscription rate of 1021%, attracting over 12,000 individual and institutional investors with total subscriptions amounting to SAR 3.8 billion. The fund manager is currently finalizing the property transfers, with any excess subscription funds set to be refunded next week, followed by the listing of fund units on the Saudi market.

Each investor will be allocated a minimum of 1,000 units, with the remaining units distributed proportionally based on subscription requests.

The fund aims to engage in the small and medium-sized enterprises (SME) sector through either acquiring equity stakes in SMEs or providing direct convertible financing, contributing to both economic and social development. This aligns with the initiatives of the General Authority for Small and Medium Enterprises, which seeks to enhance SMEs’ contribution to GDP, expand national workforce participation, and support Saudi Arabia’s Vision 2030 goals.

Dr. Ghassan Al-Sulaiman emphasized that this initiative aligns with the authority’s strategy to improve the business environment, facilitate commercial activities by reviewing regulations, enhance access to financing, and promote entrepreneurship. The authority views strategic partnerships as key to achieving long-term economic growth in line with Vision 2030.

Dr. Ayed bin Farhan Al-Qahtani, Chairman of Musharaka Capital, highlighted the company’s commitment to supporting SMEs as part of its strategy to contribute to the national economy. He noted that SMEs play a crucial role in economic competitiveness globally, and Musharaka’s collaboration with the authority will strengthen private sector involvement in economic development, creating new job and business opportunities.

Musharaka Capital CEO, Ibrahim bin Fahd Al-Assaf, reaffirmed the company’s role in enhancing business environments and economic growth. He emphasized that Musharaka Capital is dedicated to providing high-value investment opportunities, aiming to be a leader in the SME sector. He reiterated the company’s commitment to supporting SMEs as key drivers of economic expansion.

Musharaka Capital is a licensed financial firm regulated by the Capital Market Authority, specializing in investment fund management, advisory services, and securities custody. The General Authority for Small and Medium Enterprises is responsible for supporting and developing SMEs by fostering strategic partnerships and positioning the SME sector as a vital engine for economic growth under Vision 2030.