Tharawat to set up $50-60m Saudi equity fund

Tharawat plans to invest in a Saudi Arabia real estate project in the third quarter worth $50-$60m. Director of investment Abdulaziz Saad Al Resai said a startegic investor has pledge to invest $30m in an industrial estate in Riyadh.

The company is also looking to set up 2-3 more funds investing in Saudi Arabia’s property market by the end of this year. According to Al-Resais Saudi Arabia’s property market was least affected by the housing glut and the financial crisis in the Middle East.

Although Dubai and the euro zone debt crises had hurt its plan to raise $100 million in 2009 for its sukuk fund, it managed to raise between $10-20m so far due to the global market volatility.

Al Resais said this due to the concern in the fixed income market in general, not particularly sukuk. He hopes to have more information being disseminated so that investors will be able to differentiate between sukuk and conventional bonds in the future.