What are the REIT funds and what is their purpose?

They are closed-end real estate investment traded funds, whose units are traded in the stock exchange market, such as trading of listed stocks, and they aim to facilitate investment in developed and ready-to-use properties that generate periodic and rental income. As is the case with any other investment instruments in the capital market, REIT funds are subject to monitoring and supervision by the Capital Market Authority (CMA) and “Tadawul”, each according to its specialization. The capital market regulations also require the real estate investment traded funds to comply with high levels of transparency and disclosure that exceed those imposed on the investment options available in the traditional real estate market.