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How to exit a real estate fund in Saudi Arabia (and what to expect)

Date 20 May 2025

Raahym Malik
Written by Raahym Malik
How to exit a real estate fund in Saudi Arabia (and what to expect)
Table iconTable of contents

    Key takeaways

    1

    No early exit is allowed, your capital is locked until the fund closes.

    2

    Upon maturity, assets are sold and returns are distributed.

    3

    Some funds may include an extension period to maximize returns.

    Real estate funds in Saudi Arabia are designed for long-term investing, so it’s important to know how and when you can exit before you commit. Here’s what to expect:

    1. No Early Exit Options (For Now)

    Once you invest in a Saudi fund on Stake, you're committed for the full duration of the fund.
    This means:

    • You can’t withdraw early or sell your units mid-way through the fund cycle.
    • You’ll receive your full capital and final returns only after the fund ends and assets are sold.

    2. What Happens at Exit

    At the end of the fund’s term:

    • The fund manager sells the real estate assets.
    • The sale proceeds are distributed proportionally to all investors based on their unit ownership.
    • Your investment is officially closed, and you’ll receive a final return summary.

    3. Extension Periods May Apply

    Some funds may include an optional extension period built into the terms.
    For example:

    • A 3-year fund might include a 1-year extension to allow more time for asset sales.
    • This flexibility helps the fund manager maximize returns by waiting for favorable market conditions.

    Pro Tip: Always check the fund’s documentation for exact terms, duration, and potential extension windows before investing.