They are closed-end real estate investment funds offered to the public, aimed at investing in the real estate sector and subject to the supervision and regulation of the Capital Market Authority. This type of fund is characterized by a low initial investment cost, allowing investors with small and medium capital to invest in the real estate sector. The aim of this type of fund is to grow capital over the medium to long term or to distribute periodic profits according to the fund's objective. The types of non-traded public real estate investment funds are divided into one or more of the following objectives:
1- Developing infrastructure and then selling: This is done by acquiring raw land, then developing it, dividing it into residential or commercial plots, and finally selling it and closing the fund.
2- Structural development followed by sale: This involves acquiring raw or developed land to create residential or commercial units on it, and then selling them and closing the fund.
3- Developing infrastructure or construction; with the aim of leasing it for a specified period and then selling it and closing the fund.
4- Acquisition of properties developed with construction, suitable for periodic and rental income.
It is also permissible to establish other types or purposes of funds not mentioned above after obtaining the necessary approvals from the regulatory authorities.
