Al Rajhi Launches Shariah Global REIT Investment Product

Al Rajhi Launches Shariah Global REIT Investment Product

Al Rajhi Banking & Investment Corporation (Malaysia) Bhd (Al Rajhi Bank Malaysia) has partnered with Manulife Investment Management (M) Bhd to expand its shariah investment offerings in Malaysia.

Under this partnership Al Rajhi will be distributing Manulife’s Shariah Global REIT Fund (“the Fund”). This means Malaysians now have the opportunity to invest in Shariah-compliant real estate investment both locally and from across the globe. This is a rather historic development, as it is the first time that Al Rajhi Bank Malaysia is making Shariah REIT investment available to its customers.

With this partnership, Malaysian customers will gain access to a much wider range of property investments, in addition to the 14 Shariah-compliant unit trust funds available to them via the Bank currently. Investment opportunities will also include large-scale infrastructure projects typically off-limits to retail investors. 

Shariah Global REITs hold several key advantages over other forms of investment due to its combining of features of real estate and trust funds. One such advantage is the ability to allow investors to diversify their risk profile with a range of real estate based on their risk appetite and financial goals. Investors also potentially receive a higher dividend distribution and enjoy stable and sustainable returns. 

“This fund offers our customers potential for stable and growing dividends, long term investment growth opportunities and exposure to emerging global trends. Our customers will now have the ability to grow their wealth to meet their financial goals through our continued expansion in product offerings,” said Al Rajhi Bank Malaysia Chief Executive Officer Arsalaan (Oz) Ahmed.

“Global REITs can withstand different market conditions due to their lower correlation with other asset classes and can provide steady dividend yields. This feature is even more prevalent for investors in 2023, as heightened global inflation and ongoing geopolitical developments means markets will remain volatile,” added Manulife Investment Management (M) Bhd’s Chief Executive Officer Jason Chong.

The Manulife Shariah Global REIT Fund is now available at all Al Rajhi Bank Malaysia branches. You can find more information on this property investment product at the bank’s website.

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