What is Kafaa Capital's fractional ownership product?

Kafaa Capital is developing a fractional ownership product designed to allow individuals to invest in multiple real estate assets with investments starting from **SAR 2,000**. This product aims to diversify investments and reduce vacancy risk for small-scale savers.

What returns do Kafaa Capital's financing products offer?

Kafaa Capital's financing products for investors offer returns ranging between **10% and 17%**. These returns are based on assessments of creditworthiness, project cash flows, and collateral requirements.

Which areas in Saudi Arabia are expected to see increased real estate activity?

Increased real estate activity is anticipated in **Riyadh, Jeddah, and the holy cities**. This growth is attributed to factors like lower taxes, religious tourism, and Premium Residency opportunities.

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Market Data·7 October 2026

Kafaa Capital Finances SAR 100 Million in Saudi Real Estate and Plans Fractional Ownership

Kafaa Capital has financed nearly SAR 100 million in Saudi real estate and contracting projects since inception, with plans to introduce a fractional ownership product for investments starting at SAR 2,000.

Saudi Arabia's real estate sector is anticipating increased demand, driven by lower property prices and growing supply, according to Kafaa Capital. The company announced that its total financing for real estate and contracting projects has approached SAR 100 million since it began operations, with no recorded defaults to date.

Kafaa Capital intends to focus its immediate activities on financing real estate investment and development projects, as well as distributing various investment funds. Crucially, the firm is working to secure the necessary licences from the Real Estate General Authority to launch a new fractional ownership product. This initiative aims to broaden access to real estate investment, allowing individuals to participate with investments as low as SAR 2,000.

Driving Market Demand

Yousef Al-Zumai, Founder and Chairman of Kafaa Capital, highlighted that the current market conditions, characterised by declining prices and increased supply, are expected to stimulate demand. He anticipates renewed interest from local buyers for both residential ownership and rental investment opportunities. Also, foreign investment inflows and property ownership by non-Saudis are projected to contribute to market activity.

Kafaa Capital's financing products offer investors returns ranging between 10% and 17%. Assessment of financing applications is based on creditworthiness, project cash flows, and collateral requirements. The company also considers the payment cycles within the contracting sector, particularly 'Back-to-Back' agreements, to ensure appropriate guarantees are in place against potential delays in receivables.

Investment Opportunities and Market Insights

Beyond direct financing, Kafaa Capital will facilitate investor access to real estate funds, fixed-income funds, and private funds managed by Capital Market Authority-licensed financial companies. The planned fractional ownership product aims to allow small-scale savers to diversify investments across multiple assets, reducing vacancy risk and providing varied sources of returns and potential capital gains over the medium to long term.

The company recently conducted a study on Riyadh's real estate market trends, covering five key geographical areas aligned with municipal zoning. This research aimed to assess demand and identify investment opportunities. Factors expected to influence market activity in the coming period, particularly in Riyadh, Jeddah, and the holy cities, include lower tax and fee burdens compared to global economic capitals, growth in religious tourism, and opportunities presented by Premium Residency (Golden Visa schemes).

Frequently asked

Questions, answered

What is Kafaa Capital's fractional ownership product?: Kafaa Capital is developing a fractional ownership product designed to allow individuals to invest in multiple real estate assets with investments starting from **SAR 2,000**. This product aims to diversify investments and reduce vacancy risk for small-scale savers.
What returns do Kafaa Capital's financing products offer?: Kafaa Capital's financing products for investors offer returns ranging between **10% and 17%**. These returns are based on assessments of creditworthiness, project cash flows, and collateral requirements.
Which areas in Saudi Arabia are expected to see increased real estate activity?: Increased real estate activity is anticipated in **Riyadh, Jeddah, and the holy cities**. This growth is attributed to factors like lower taxes, religious tourism, and Premium Residency opportunities.
What is the total financing provided by Kafaa Capital to date?: Kafaa Capital has provided nearly **SAR 100 million** in financing for real estate and contracting projects since its operations began, with no defaults recorded.
What licences is Kafaa Capital seeking for its new product?: Kafaa Capital is actively working to obtain the necessary licences from the **Real Estate General Authority** to launch its fractional ownership product.

Reported by

Zawya — UAE Real Estate

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This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.

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