Real Estate Investment Trusts in The Hospitality Sector of Saudi Arabia: Effect of Vision 2030 on REITs as an Investment Option

Abstract

A Real Estate Investment Trust (REIT) is a type of investment company that owns and operates income-generating real estate assets, such as commercial properties, apartments, and hotels. REITs allow investors to pool their money and invest in a diversified portfolio of real estate assets. In Saudi Arabia, Real Estate Investment Trusts (REITs) in the hospitality industry have been established. Saudi Arabia's hospitality REITs have drawn both domestic and global investment, serving as a source of funding for the country's hospitality sector's growth and development. This study focuses on how Saudi Arabia's Vision 2030 affects the revenue generated by Real Estate Investment Trusts (REITs) in the hotel industry. The study compares the revenue performance of hospitality REITs after the adoption of Vision 2030, and results show that Vision 2030 has a beneficial effect on the revenue of hospitality REITs, with an increase in revenue growth rates following the adoption of the policy. The report emphasizes the importance of government policies in influencing the real estate market and contends that Vision 2030 has been instrumental in improving the revenue performance of the hotel industry.