Musharaka Capital

Musharaka REIT Fund

Musharaka REIT Fund

  • REIT
    (Licensed by CMA & Compatible with Islamic SHARIA)
    • Fund’s Capital (SAR)


    • Assets Value (as of 30 June 2023) 


Musharaka Real Estate Investment Trust (REIT) Fund maximizes on opportunities in Saudi Arabia’s burgeoning real estate market.

The Fund is listed on the Saudi Stock Exchange (Tadawul) and included in the benchmark FTSE EPRA Nareit Global Real Estate Index Series that specializes in real estate investment trusts and real estate companies. The fund comprises 13 real estate assets located mainly in the Eastern Province of Saudi Arabia, and in Riyadh, and UAE, spanning the residential, hospitality, industrial and commercial sectors.

Musharaka REIT TASI

  • 5.63
  • 0.02
  • 0.35 %
  • Inception Date

    October 1, 2017

  • Number of issued Units

    88 Million unit

  • Nominal Price

    SAR 10 per unit

  • Distribution  Policy

    Twice a year

  • NAV per Unit (as of 30 June 2023)


  • Revenue for the period ending 
    30 June 2023


Musharaka REIT Terms and Conditions



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.

The Traditional Real Estate Fund can only be exited after the expiry or termination of its term; unlike the REIT fund, which allows the investor to trade units in the Saudi Stock Exchange “Tadawul” at any time during its official working hours.

By entering the Tadawul platform and buying or selling the Fund’s units directly, same as the mechanism of buying and selling stocks of the listed companies.

To invest mainly in constructionally developed real estate assets capable of generating rental and periodic income, and distribute at least 90% of the Fund’s annual net profits, and these assets are represented in various sectors. The Fund will not invest in white lands, and it may invest up to (25%) of the Fund’s total asset value in the real estate development and the usufruct rights.

Yes, the Shariyah Review Bureau (the Fund’s Shariah Advisor) issued its decision to approve the Fund’s terms and conditions. The Shariyah Review Bureau is a company specialized in providing Shariah audit and review services, and is a member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and licensed by the Central Bank of Bahrain to provide Shariah consulting services.

The Fund does not have an articles of incorporation or a memorandum of association; however, the Fund has a prospectus called (Terms and Conditions) that must be viewed and read by anyone who wants to invest in the Fund; in order to be aware of the Fund's management, its legal contracts and investment objectives, potential investment risks, and other details.

The REIT Fund is considered to have a medium risk.

The Fund Manager must distribute the cash profits to the unitholders at least once a year; with a rate not less than 90% of the Fund’s annual net profits. The Musharaka REIT Fund’s policy is to distribute the profits to the unitholders twice a year “every six months”.

The Musharaka REIT Fund is targeting a total return of 8.6%, which is considered one of the highest total returns in the market; whereas the target net return on the Fund's capital reaches 7%, and the Fund Manager aims to raise the net return for the investors in the coming years through new and distinctive investments that benefit the unitholders.

Total Return is the return on capital before the deduction of the Fund’s fees and expenses. Net Return is the return on capital after the deduction of the Fund’s fees and expenses.

The operating profit is often distributed, which is the net profit after adding the intangible expenses, such as depreciation and amortization.

The Rental Contract is concluded with the (Tenant), who uses the property for his own benefit in exchange for predetermined rental payments. The Property Management Contract is concluded with the (Property Manager); as he manages, operates and leases the property and collects the returns on behalf of the owner.

The Custodian is the one who takes on the role of protecting client’s assets and ensure seamless support with all investment regulatory requirements, and it must be a company licensed by the (CMA); in order to provide the custody services. The Custodian retains all the Fund’s important documents and records, which include but are not limited to the following: title deeds, investment decisions, important and substantial contracts related to the Fund's operations and work, minutes of the Fund's Board of Directors meetings, assessment reports, performance reports, and financial reports.

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