How real estate REITs will perform in Saudi Arabia in 2023?

Sultan Al Nukali, chairman of the board of Future Goals Consultancy, said REIT funds, like any asset, are influenced by market factors such as interest rates and liquidity in the market in addition to current expectations and future.

Al-Nukali added, in an interview with Al-Arabiya, that the decline of performance of REIT funds has been the result of these factors changing.

He pointed out that REIT funds in 25- and 30-year periods of inflation outperform other industries.

He revealed that the performance long-term fund REIT exceeds the performance of other assets by approximately 3.5%.

Al-Nukali explained that the RET in Saudi Arabia was around 3900 points 3 years ago and as of today’s close, the index is trading at the same level.

Regarding expectations for the year 2023, Al-Nukali said that the REIT sector could be positively impacted after the balance sheet announcement and the achievement of a surplus, indicating that the challenge facing the sector is the size of the current growth and measure in which fund managers can take in loan taking in loan.

Al-Nukali said fund managers are of great importance to the management of REITs in loan terms, expansion and loan quality assetnoting that the performance fund by fund is influenced by market factors, but there must be a good team that manages the finance.

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