Rasmala to raise US$100mn

Dubai bank targets Saudi real estate market.

Rasmala Investments, a Dubai-based investment bank, is to raise between US$75mn and US$100mn in August for a new real estate fund, according to reports.

The fund will target middle-income residential projects primarily in Riyadh, Saudi Arabia.  A report by real estate specialist Jones Lang LaSalle claims population growth has created a housing shortage in the country.

Rasmala will open the fund to investors across the GCC with the bank predicting that the average annual internal rate of return will be around 20%.

Reports also claim Rasmala could launch more real estate funds targeting the GCC and Egypt if it finds suitable opportunities.