Key Takeaways
- • Al Ramz Real Estate and Oud Capital launched a $267 million (SAR1 billion+) Shariah-compliant real estate investment fund to develop over 800 residential units across 70,516 square meters of land in Saudi Arabia.
- • The fund is wholly owned by Al Ramz and managed by Oud Capital, with development expected to complete over approximately three years (2026–2029), generating positive earnings contribution during the period.
- • Al Ramz will earn development fees of SAR39 million (10% of the SAR391 million development contract value) plus marketing fees of 2.5% of total project sales, creating multiple revenue streams from the initiative.
- • The transaction structures Al Ramz's existing residential portfolio into an investment vehicle, allowing capital deployment while maintaining ownership and capturing fee-based economics alongside equity upside.
Summary
Saudi-based Al Ramz Real Estate Company has partnered with Oud Capital to establish a Shariah-compliant real estate investment fund capitalized at over $267 million to develop and monetize residential properties owned by Al Ramz. The announcement, filed with Saudi Arabia's Tadawul stock exchange, marks a structured approach to deploying capital within the Kingdom's residential real estate sector.
The fund will develop a portfolio encompassing more than 800 residential units situated across approximately 70,516 square meters of land. Oud Capital will serve as fund manager while Al Ramz retains full ownership, creating a structure that preserves control while introducing professional asset management and institutional capital. The development contract underlying the portfolio is valued at approximately SAR391 million.
Financial terms reflect a multi-layered compensation model for Al Ramz. The company will receive development fees totaling around SAR39 million, representing 10% of the development contract value, supplemented by marketing fees equivalent to 2.5% of aggregate project sales. This tiered fee structure provides Al Ramz with upfront cash flow from development services while capturing proportional returns as units are marketed and sold.
Timeline projections indicate project completion and unit sales to occur over approximately three years, with Al Ramz explicitly noting that the transaction is expected to contribute positively to its financial performance through 2029. The Shariah-compliant structure aligns the fund with Islamic finance principles, broadening its appeal to institutional and individual investors subject to religious investment guidelines in the Gulf region and beyond.
The initiative reflects broader trends among Saudi real estate developers to securitize and professionalize residential portfolios, enabling capital efficiency while maintaining operational control and fee-generating relationships with fund sponsors.
The fund will develop a portfolio encompassing more than 800 residential units situated across approximately 70,516 square meters of land. Oud Capital will serve as fund manager while Al Ramz retains full ownership, creating a structure that preserves control while introducing professional asset management and institutional capital. The development contract underlying the portfolio is valued at approximately SAR391 million.
Financial terms reflect a multi-layered compensation model for Al Ramz. The company will receive development fees totaling around SAR39 million, representing 10% of the development contract value, supplemented by marketing fees equivalent to 2.5% of aggregate project sales. This tiered fee structure provides Al Ramz with upfront cash flow from development services while capturing proportional returns as units are marketed and sold.
Timeline projections indicate project completion and unit sales to occur over approximately three years, with Al Ramz explicitly noting that the transaction is expected to contribute positively to its financial performance through 2029. The Shariah-compliant structure aligns the fund with Islamic finance principles, broadening its appeal to institutional and individual investors subject to religious investment guidelines in the Gulf region and beyond.
The initiative reflects broader trends among Saudi real estate developers to securitize and professionalize residential portfolios, enabling capital efficiency while maintaining operational control and fee-generating relationships with fund sponsors.
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