Alahli Reit Fund 1

What Alahli Reit Fund 1 does

AlAhli REIT Fund 1 is a closed-ended, Shariah-compliant Real Estate Investment Traded Fund listed on the Saudi Exchange (Tadawul) under ticker 4338. Founded in 2019 with an initial book value of SAR 1.375 billion (SAR 412.5 million raised via public IPO), the fund invests in income-generating Saudi real estate across retail, hospitality, and office sectors to deliver periodic rental income and capital appreciation to unitholders. Its four core properties are Al Andalus Mall (a 360-shop, ~89,713 sqm net leasable shopping center in Jeddah acquired for SAR 1.15 billion), the Staybridge Suites Jeddah Alandalus Mall hotel (a 5-star, 164-apartment property acquired for SAR 200 million), Salama Tower (a 13-floor office building on Al Madina Road, Jeddah, acquired for SAR 255 million), and Qbic Plaza (a three-floor office complex in Riyadh fully leased to the Ministry of Housing).

The fund is managed by NCB Capital Company (also referred to as SNB Capital or AlAhli Capital), the investment banking and asset management arm of National Commercial Bank (NCB), which holds over 90% ownership of the manager. NCB Capital is authorized by the Saudi Capital Market Authority under license number 37-06046 and is described as the largest Shariah-compliant asset manager globally with over SAR 140 billion in AUM. Day-to-day property operations are outsourced to specialist third-party managers: Hamat Property Co. for Al Andalus Mall, Alandalus Property Co. for the hotel, and Jabal Idsas for Salama Tower following the August 2024 master-lease expiry. A dedicated Sharia Board chaired by Sheikh Abdullah Bin Suleiman Al-Maniya certifies that all activities and investments comply with Islamic finance principles.

The fund generates revenue primarily through rental income from its property portfolio, with capital appreciation as a secondary upside. Its distribution policy targets at least 90% of annual net profits paid semi-annually via Tadawulaty. Reported financials show net assets of SAR 1,237.9M at end-2023 and SAR 1,218.3M at H1 2024, with net profit of SAR 40.6M (FY2023) and SAR 14.8M (H1 2024), and period returns of 2.9% and 1.1% respectively. There are 137.5 million outstanding units, with NAV per unit at SAR 8.86 (book) or SAR 10.04 (fair value) as of June 2024.

Name

Alahli Reit Fund 1

Legal name

AlAhli REIT Fund (1)

Website

https://alahlireit.com

Company type

Public

Founded year

2019

Operating status

Operating

Short description

AlAhli REIT Fund 1 is a Shariah-compliant Saudi real estate investment traded fund (Tadawul: 4338) that invests in income-generating retail, office, and hospitality properties and distributes at least 90% of annual net profits to unitholders twice yearly.

Ownership category

akta.pro rank

Product category

Shariah-compliant Real Estate Investment Trust (REIT)

NAICS

Other Investment Pools and Funds (5259), Other Financial Vehicles (525990)

SIC

Real Estate Investment Trusts (6798)

akta.pro primary industry

REITs & Listed Real Estate Securities (FSAAAKAD)

Keywords

• Shariah-compliant reit
• Real estate investment fund
• Rental income distribution
• Commercial property investment
• Tadawul traded fund

Headquarters

HQ city

Riyadh

HQ country

Saudi Arabia

HQ region

Middle East

Offices6 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Infrastructure, Personnel, Supply Chain, Others

Revenue model

1. Rental Income: The fund generates periodic rental income from its portfolio of income-generating real estate properties including commercial malls, office towers, and hotel properties across Saudi Arabia. The fund targets distribution of at least 90% of annual net profits to unitholders twice per year.
2. Capital Appreciation: Growth in total value of fund assets through property appreciation and strategic asset management, providing unitholders with potential capital gains in addition to rental income distributions.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels4 records

Core offering

AlAhli REIT Fund 1 is a closed-ended Shariah-compliant Real Estate Investment Traded Fund that invests primarily in income-generating real estate properties in Saudi Arabia to generate periodic rental income and capital appreciation for its unitholders. It targets distribution of at least 90% of annual net profits to unitholders twice per year via the Tadawul exchange, with units traded under symbol 4338. Its portfolio comprises four assets: Al Andalus Mall (retail, Jeddah), Al Andalus Mall Hotel / Staybridge Suites (hospitality, Jeddah), Salama Tower (office, Jeddah), and Qbic Plaza (office, Riyadh).

Product overview

AlAhli REIT Fund (1) is a closed-end Shariah-compliant Real Estate Investment Traded Fund that aims to provide periodic rental income to unitholders by investing in income-generating properties. The fund distributes cash dividends twice per year targeting at least 90% of annual net profits. The portfolio consists of four core assets: Al Andalus Mall (a shopping center with 360+ shops in Jeddah), Al Andalus Mall Hotel (a 5-star StayBridge Suites hotel), Salama Tower (an office tower in Jeddah), and Qbic Plaza (an office complex leased to the Ministry of Housing in Riyadh).

Differentiator

Problem solved

Functional benefit

Products and services

• AlAhli REIT Fund 1 Units (Tadawul: 4338) Tradeable investment units in a Shariah-compliant Saudi REIT that gives unitholders exposure to a diversified portfolio of income-generating commercial real estate (retail mall, hotel, and two office towers) in Saudi Arabia, with semi-annual cash dividends targeting at least 90% of annual net profits distributed via Tadawulaty.
• Al Andalus Mall (Portfolio Asset) Major shopping mall in Jeddah at the intersection of King Abdullah Street and Prince Majed Street, comprising 360 shops, a net leasable area of 89,713 sqm, and over 11 million visitors in 2018; held by the fund to generate rental income from retail tenants.
• Al Andalus Mall Hotel (Staybridge Suites Jeddah Alandalus Mall) 5-star hotel interconnected to Al Andalus Mall in Jeddah, comprising 44 studios, 90 one-bedroom and 30 two-bedroom apartments (164 units total), located 20 minutes from King Abdulaziz International Airport; held by the fund to generate hospitality rental income, operated by AlAndalus Property Co.
• Salama Tower (Portfolio Asset) Prime 13-floor (plus basement and mezzanine) office tower on Al Madina Road near Hira intersection in Jeddah's Al Salama district, comprising 109 offices, 8 showrooms and 2 warehouses; fully leased (98.5% post-master-tenant transition in August 2024) to tenants including Samsung Gulf Electronics, Al Rajhi Cooperative Insurance, Al Rajhi Takaful, Taajeer Group, Tim Hortons, National Aviation Services Company and Salama Insurance.
• Qbic Plaza (Portfolio Asset) High-end three-floor office complex in Al Ghadeer District, Riyadh, with total land area of 17,444 sqm and leasable area of 21,253 sqm, fully leased to the Saudi Ministry of Housing for a three-year term; held by the fund to generate stable rental income from a government tenant.

Quantifiable outcome

• 98.5% occupancy rate for Salama Tower after master tenant lease expiry (managed by third-party property manager)
• +2 more outcomes

Named customers4 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core.

• Jabal IdsascoreImplementation/ SI/ Consulting PartnerJabal Idsas is the property operator/manager for Salama Tower. The tower is 100% leased and managed by this third-party property manager specializing in Jeddah office sector following the expiry of the master tenant lease contract.
• AlAndalus Property Co.coreImplementation/ SI/ Consulting PartnerAlAndalus Property Co. is the operator of Al Andalus Mall Hotel (Staybridge Suites Jeddah Alandalus Mall). Manages the 5-star hotel with 164 apartments including 44 studios, 90 one-bedroom, and 30 two-bedroom units.
• Hamat Property Co.coreImplementation/ SI/ Consulting PartnerHamat Property Co. is the Operator and Lease Manager for Al Andalus Mall in Jeddah. Manages one of the largest shopping centers in the region with 360 shops and approximately 90,000 sqm of net leasable area.
• Ministry of Housing (Saudi Arabia)coreChannel Partner/ Reseller/ DistributorThe Ministry of Housing is the primary tenant of Qbic Plaza, leasing the entire three-floor office complex (21,253 sqm leasable area) for a period of three years. This government partnership provides stable rental income for the fund.

Scale indicators15 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• Riyad REIT: Riyad REIT (Tadawul: 4333) is a Saudi-listed Shariah-compliant closed-ended REIT investing in income-generating real estate. It is the most direct comparable to AlAhli REIT Fund 1 in structure, regulatory framework, and target unitholder base.
• Musharaka REIT: Musharaka REIT is a Saudi-listed Shariah-compliant income-focused REIT. Direct peer to AlAhli REIT Fund 1 given identical Islamic finance structure and Saudi real estate asset focus.
• Derayah REIT: Derayah REIT is a Saudi-listed Shariah-compliant REIT offering exposure to Saudi commercial real estate. Direct peer to AlAhli REIT Fund 1 in fund structure, target market, and regulatory framework.
• SEDCO Capital REIT: SEDCO Capital REIT (Tadawul: 4329) is one of the earliest Saudi-listed Shariah-compliant REITs investing in Saudi real estate. Direct peer to AlAhli REIT Fund 1 with similar structure and target unitholders.
• Al Rajhi REIT: Al Rajhi REIT (Tadawul: 4340) is a Shariah-compliant Saudi REIT managed by Al Rajhi Capital. Direct peer given identical regulatory structure, target market, and asset class focus as AlAhli REIT Fund 1.
• MEFIC REIT: MEFIC REIT (Tadawul: 4335) is a Saudi-listed Shariah-compliant REIT that invests in income-generating real estate. Closely comparable to AlAhli REIT Fund 1 in fund structure and regulatory environment.
• Jadwa REIT Saudi: Jadwa REIT Saudi (Tadawul: 4341) is a Shariah-compliant Saudi REIT investing across Saudi real estate sectors. Directly comparable to AlAhli REIT Fund 1 in fund structure, Shariah compliance, and dividend distribution model.

Broad incumbents

• Dar Al Arkan Real Estate Development: Dar Al Arkan (Tadawul: 4300) is a leading Saudi real estate developer with significant commercial and residential property. Comparable to AlAhli REIT Fund 1 through its Saudi real estate exposure, but focused on development rather than income-producing REIT assets.
• Kingdom Holding Company: Kingdom Holding Company (Tadawul: 4280) is a major Saudi diversified holding company with significant real estate assets, including Kingdom Tower in Riyadh. Comparable as a major Saudi real estate investor but with a broader portfolio mandate than a pure REIT.

Others

• SNB Capital (as fund manager): SNB Capital (NCB Capital) is the fund manager of AlAhli REIT Fund 1 and the largest Sharia-compliant asset manager globally. Comparable as the operating ecosystem that creates, lists, and manages Saudi REITs including AlAhli REIT Fund 1.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Alahli Reit Fund 1