News 2006

Nov 2006

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Samba launches the First Real Estate Fund in the Kingdom Approved by the Capital Market Authority

Mr. Eisa M. Al-Eisa, Samba Managing Director and CEO, announced that Samba intends to launch a new Shariah Compliant Real Estate Fund, the first of its kind in the Kingdom under the umbrella of the Real Estate Investment funds bylaws and regulations issued recently by the Capital Market Authority. This fund is advantaged by a quarterly evaluation mechanism to enable investors perform the fund's transactions, such as subscription, redemption, etc. during the investment period according to a pre-specified time schedule".

"Launching such a product as an investment fund focusing on the real estate sector, is a pioneer idea with broad success prospects. The fund's activities cover several investment areas in this promising sector, such as acquiring and developing residential, commercial and investment lands for sale or lease; financing residential, commercial and industrial real estate projects and selling them at installments, as well as other real estate financing need. The Fund will be eligible also to invest in equities of real estate companies" Al Eisa was quoted as saying.

"Launching the Fund at this juncture aims at availing of several encouraging factors driving investment in the real estate sector on top of them the government trends to foster this vital segment as well as the its current and prospective growth. Being the fastest growing sector and on the grounds of all such enabling factors, make the fund an optimal and attractive investment vehicle to diversify investment portfolio and mitigate risk profile the investor may be exposed to if concentrating on a narrow investment choice or market" Al Eisa added.

Al Eisa further confirmed that "Samba's persistent endeavors to create and launch more and more successful investment tools is stemmed from its conviction to provide proper investment vehicles to attract customers' savings, grow them satisfactorily to the customers and make available plenty of alternatives to investors". Al Eisa pointed out that "Samba provides a broad and diversified array of investment funds in money markets, bonds, as well as local, GCC, International, Japanese, European, USA, Chinese, Far Eastern, etc. equities. The launching of more Shariah compliant products is under the bank's special focus to meet the requirements of a wide segment of customers and satisfy their ambitions and needs in line with their perspective and outlook toward banking services and products.