- The King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia, is aiming to raise around $700 million—potentially up to $750 million—by listing some of its income-generating buildings in a real estate investment trust (REIT) on the Saudi stock exchange. The proceeds will be used to further develop the district, which has been under construction for over a decade. Citigroup, HSBC, and Al Rajhi Capital are advising on the deal, though no final decisions on the terms have been made.
- KAFD’s development is part of the Public Investment Fund’s (PIF) strategy to seek new financial avenues and reduce reliance on sovereign fund injections. KAFD is a key part of Saudi Arabia's economic transformation, serving as a hub for foreign firms establishing regional headquarters in Riyadh. The REIT offering also aims to revitalize the country’s REIT market, attracting more investors.
Why it matters
With over 95% occupancy in completed buildings and plans for further expansion, KAFD is becoming a central player in the kingdom’s efforts to diversify its economy and boost foreign investment.
