RIYADH: Alistithmar Capital, the investment arm of Saudi Investment Bank, has signed an agreement with Safa Investment Co. to launch several real estate funds – with the first estimated to be worth $292.9 million. Both companies will cooperate to help support the Kingdom’s growth in the real estate sector through funds that target the residential space in main cities with particular focus on Riyadh. The funds aim to enhance the growth of the invested capital through the acquisition of land in the targeted geographical areas to develop high-quality residential complexes and sell them ready for habitation. Khalid Al-Rayes, CEO of Alistithmar Capital, explained that the company’s cooperation with Safa Investment will open opportunities to achieve greater returns. According to Safa Investment Co., the agreement aims to bridge the gap between demand and supply in the real estate market in all its sectors through projects that target strategic and vital areas in the most prominent neighborhoods in Riyadh and other cities. In March, Alistithmar Capital received approval from the Capital Market Authority for its Alistithmar Capital Quarterly Dividend Fund. Saudi Arabia’s real estate sector is witnessing massive traction and development with a huge increase in property values. Real estate prices in Saudi Arabia increased by 1.6 percent in the fourth quarter of 2022, compared to the same period in 2021, primarily driven by a rise in residential property values The price of residential properties increased by 2.6 percent in the fourth quarter of 2022, mainly fueled by a 2.7 percent rise in land plot prices. Moreover, Saudi Arabia is planning to relax its property ownership laws for foreigners as the Kingdom eyes attracting investments into the real estate sector as part of its strategy to diversify its economy.