Kafaa Capital Nears SAR 100 Million in Real Estate Financing

Kafaa Capital has announced that its total financing for real estate and contracting projects has approached SAR 100 million since the commencement of its operations. The company has reported no defaults to date, indicating a strong performance in the market. Kafaa Capital plans to focus on financing real estate investment ventures and development projects, and it is working to obtain licenses from the Real Estate General Authority to launch a fractional ownership product. This product aims to provide access to investment in multiple real estate assets, with investments starting at SAR 2,000. According to Yousef Al-Zumai, Founder and Chairman of Kafaa Capital, the current decline in prices and increase in supply are expected to stimulate demand for real estate. The company offers returns to investors ranging between 10% and 17%, with financing applications assessed based on creditworthiness and project cash flows. Kafaa Capital also considers the nature of payment cycles within the contracting sector to ensure appropriate guarantees are in place. Additionally, the company plans to offer access to various investment funds through a 'mini market' to manage surplus liquidity. The planned fractional ownership product is designed to enable small-scale savers to invest through personal savings or salary deductions, diversifying their investments across several assets. This initiative aims to help investors build real estate wealth with diversified returns and potential capital gains.