Kuwait: Kuwait Financial Centre “Markaz” concluded 2024 with a positive performance in the real estate sector, driven by the solid results of its investment solutions and in particular the flagship Markaz Real Estate Fund (MREF). MREF achieved a total return of 12.8% in 2024.
As one of Kuwait’s first real estate funds, MREF has consistently delivered stable returns over its 22-year history, achieving an impressive 7.7% IRR per annum. This track record reflects Markaz’s extensive expertise in real estate investment and wealth management, built over the past five decades. This has helped Markaz garner awards and accolades from prestigious publications such as Euromoney, EMEA Finance, MEED, Global Finance, and Global Investor, further solidifying its reputation as a trusted partner in wealth creation.
Markaz continues to offer stable investment opportunities through its real estate products, which are now available for all residents in Kuwait, from across all nationalities, in accordance to the new law on foreigner investments in Kuwait. MREF pays monthly cash dividends and provides platform for real estate investment in Kuwait through properties spanning various sectors and geographies, and sector diversification with Sharia compliance.
Executive Vice President of MENA Real Estate at Markaz, Mr. Milad Elia commented: “As one of the longest-standing real estate funds in Kuwait, MREF has consistently delivered stable returns through a well-diversified portfolio of local properties, in compliance with Islamic Shariah principles. Our team efficiently manages the portfolios, ensuring sustainable levels of occupancy and net rental income rates, further enhancing the Fund’s resilience and steady returns. MREF has been resilient across various economic cycles, due to its diversified prime assets, stable rental income, proactive asset management, conservative financial strategy, market adaptability and strong governance.”
Managing Director of Wealth Management and Business Development at Markaz, Mr. Abdullatif Al-Nusif said: “At Markaz, we have remained committed to delivering high-yield investment opportunities that provide stable and consistent monthly distributions, ensuring long-term value for our investors. Our ability to navigate market trends, backed by the expertise of our dedicated team, allows us to continuously refine our strategies and optimize returns. The inclusion of real estate in asset allocation is critical for portfolio diversification, and Markaz’s real estate products provide investors with access to different asset classes and stable income streams. As we build on our strong legacy, we remain focused on offering innovative solutions that empower our clients and strengthen Markaz’s position as a leader in wealth management.”
Real estate investment through the MREF Fund provides the investors with access to select portfolio of properties. Unlike direct property ownership, investing in real estate funds encompasses professional management of the Fund, and the underlying investments are monitored by the Fund and property manager. Additionally, the Fund structure is per regulatory guidelines and has its own auditors, custodian, investment controller and registrar. This structure helps mitigate investors’ exposure to operational risks and other challenges associated with direct ownership in real estate. Furthermore, investment in real estate funds offers diversification of the properties, reducing risk by spreading investment across multiple selected properties.
Subscription is based on unit selection, offering a liquid investment structure, with the flexibility to increase investments in small or large amounts. Investors can also benefit from the power of compounding with regular contributions. Digital subscription to the Fund can be completed through the iMarkaz app for a seamless onboarding process.MREF’s assets under management (AUM) currently stand at KD 79 million, while Markaz’s MENA Real Estate portfolio’s AUM totals KD 298 million. This growth has been achieved due to Markaz’s hands-on approach to managing income-generating and value-add properties across Kuwait and the MENA region.
Important info
- Fund manager: Kuwait Financial Centre K.P.S.C “Markaz”. Kuwait City, Al Mirqab, Al Soor Street, Burj Alshaya, Floor 8, Tel: +965 2224 8000, P.O. Box 23444, Safat 13095, State of Kuwait
- Fund Executive Committee Members: Ghazi Al Osaimi, Milad Elia, Khaled Al-Mubaraki
- To get a copy of the Fund’s Articles of Association, the subscription form and the financial statement of the fund, please visit our website: www.markaz.com
Disclaimer
This announcement is prepared for promotional purposes and has been approved by Markaz. This announcement does not disguise, diminish, or obscure important items from the investment subject of promotion. Investments in funds are subject to market risks. There can be no assurance or guarantee that the investment will produce any returns. Prospective Investors must therefore be aware of and understand that such investment carries a significant degree of risk of loss of their capital; the dividend rate cannot be predicted or guaranteed. Past performance is not a reliable indicator of future performance. Before investing, prospective investors must carefully examine the Articles of Association and all Fund-related documents to be aware of the investment methods, including the merits and risks involved.
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About Kuwait Financial Centre “Markaz”
Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.41 billion (USD 4.57 billion) as of 31 December 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.
For further information, please contact:
Sondos Saad
Corporate Communications Department
Kuwait Financial Centre K.P.S.C. “Markaz”
Email: Ssaad@markaz.com
markaz.com
