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From Saudi Arabia to the world RITA launches the first green real estate fund compliant with Sharia law


The director of the Saudi ETFB, Dr. Muhammad Al-Suwaidan, confirmed in an interview with Al-Arabiya that the company, in collaboration with international organizations in America and in London, he worked to establish a negotiated fund in stock exchange compatible with the principles of Sharia, and with the concepts of green investment.

He explained that the new investment fund will make a purchase in REIT traded funds in around the world, out of 195 listed funds in the world, which have been liquidated under Shariah controls and the standard green environmental fund. A fund and was listed on the New York Stock Exchange in a simulation of the global index of the FTSE Russell.

And it indicated that the fund is indeed listed on the New York Stock Exchange under the symbol RITA and has achieved a return of more than 4.4% 10 days ago, to reflect the quality of the fund’s assets, which allows the investor through one share to buy in 83 listed real estate funds “REITs” in 9 countries.

Al-Suwaidan described this type of competitive diversified investment, in as it offers an option for a “passive” investment that comes with continuous performance and achieves the lowest operating costs, at a rate of 0.5% for fund fees at the moment.

The director of the ETFB company expected that the RITA fund, which is available to all investors in the world and can be easily disposed of, would achieve distribution yields of between 2.5% and 3% each quarter based on a fixed rate. of annual growth of 11%.

Al-Suwaidan predicted that the RITA fund will achieve yield growth of 11% to 13% in equity returns from the REIT funds located in 2022 in 9 countries, led by the United States of America.

He pointed out that the fund’s listing on the New York Stock Exchange this month represents an important option for investing in real estate funds subject to the principles of Islamic Sharia, social responsibility and green investments, emphasizing that buildings that comply with standard are seeing increasing demand from investors around the world.

Interestingly, RITA excludes eligible REITs if they earn more than 5% of their business in the alcohol, firearms, music, tobacco, cinema and traditional television or financial services, due to “filtering” criteria compatible with Sharia principles and green concepts economy.

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