Saudi REITs included in FTSE Global Real Estate Index

The Saudi Stock Exchange (Tadawul) on Wednesday announced the inclusion of Tadawul-listed securities in the FTSE European Public Real-estate Association (EPRA) Nareit Emerging Market Index.

The index is specialized in REITs and real-estate companies, similar to other global indices, Tadawul said in a statement, adding that a group of securities have been chosen to be reviewed and added periodically and announced on the index official website.

Tadawul noted in the statement that the inclusion of Saudi REITs in global real estate indices will raise the level of Saudi REITs and align it with the international best practices, increase level of disclosure and accessibility to the capital market by foreign investors, and broaden the investors base in the Saudi capital market.

“This inclusion comes as a result of Tadawul’s relentless efforts in supporting targeted REITs and other securities to meet the criteria required for the inclusion,” the statement added.

“Inclusion in the benchmark FTSE EPRA\ Nareit Global Real Estate Index Series will enhance the visibility of the Saudi REITs market to foreign investors, further broaden the investor base, and increase the level of disclosure,” Khalid Al Hussan, CEO, Tadawul said.

“This inclusion is happening in conjunction with the recent inclusion of the Saudi Stock Exchange in global emerging market indices, that will further support the enhancements in the Saudi capital market, align its regulatory framework with the international best practices, a key goal of the Financial Sector Development Program (FSDP) Kingdom's Vision 2030,” Al Hussan added.

Tadawul launched and listed the Kingdom’s first REIT in late 2016. Since then, the number of listed REITs has grown to 17 with a combined market capitalization of nearly $3.5 billion.