Key Takeaways
- • Al Majdiah signed three residential development agreements with Jadwa Al-Manzel Real Estate Fund totaling SAR 266 million ($71 million) in December 2025, covering projects in Riyadh's Olaya, Arqa, and Hittin districts.
- • The portfolio includes a 24,336 sqm residential tower on Olaya Street (SAR 115.5M, 42-month timeline), a 25,500 sqm apartment complex in Arqa (SAR 65.4M, 30 months), and a 30,764 sqm residential compound in Hittin (SAR 85.1M, 36 months).
- • Projects operate under a cost-plus development model with actual construction costs plus development, performance, and marketing fees, structured under Saudi Arabia's Off-Plan Sales Program (Wafi).
- • Combined built-up area across the three projects reaches approximately 80,600 square meters, positioning Al Majdiah to expand its residential portfolio in premium Riyadh submarkets.
- • Al Majdiah expects positive financial impact from project commencement, supporting near-term revenue recognition and cash flow generation.
Summary
Dar Al Majed Real Estate Co. (Al Majdiah), a Saudi Arabian residential and commercial real estate developer, executed three separate development agreements with the Jadwa Al-Manzel Real Estate Fund on December 11, 2025, collectively valued at SAR 266 million. The transactions represent a material expansion of Al Majdiah's development pipeline across three strategically positioned Riyadh districts and underscore continued institutional capital deployment into Saudi Arabia's residential sector amid sustained urbanization and housing demand.
The first project comprises a residential tower development on Olaya Street in the King Fahd district, covering approximately 3,250 square meters of land with a built-up area of 24,336 square meters. The project carries an estimated cost of SAR 115.5 million and a construction timeline of 42 months. Olaya Street remains one of Riyadh's most sought-after commercial and mixed-use corridors, suggesting premium positioning and pricing potential. The second agreement targets the Arqa district, where Al Majdiah will develop an integrated apartment complex spanning 7,103.61 square meters of land with 25,500 square meters of built-up area. This 30-month project is budgeted at SAR 65.4 million and focuses on mid-to-high-rise multifamily housing. The third initiative involves a residential compound in the Hittin district, encompassing 14,709 square meters of land with 30,764 square meters of built-up area, estimated at SAR 85.1 million with a 36-month development schedule.
All three projects operate under Saudi Arabia's Off-Plan Sales Program (Wafi), a regulatory framework designed to facilitate residential pre-sales and investor confidence. The development structure employs a cost-plus model, whereby Al Majdiah recovers actual construction expenditures plus development, performance, and sales and marketing fees. This arrangement aligns incentives between the developer and the fund sponsor while providing transparency on cost management. The projects are expected to generate positive financial impacts beginning from commencement, supporting near-term earnings and balance sheet optimization for Al Majdiah as units are sold and progress billing occurs.
The aggregate 80,600 square meters of built-up area across the three initiatives significantly expands Al Majdiah's active pipeline and reinforces its market position within Riyadh's residential development sector. The geographic diversification across Olaya, Arqa, and Hittin reflects strategic exposure to multiple submarkets with varying demographic and income profiles, reducing concentration risk and broadening addressable demand.
The first project comprises a residential tower development on Olaya Street in the King Fahd district, covering approximately 3,250 square meters of land with a built-up area of 24,336 square meters. The project carries an estimated cost of SAR 115.5 million and a construction timeline of 42 months. Olaya Street remains one of Riyadh's most sought-after commercial and mixed-use corridors, suggesting premium positioning and pricing potential. The second agreement targets the Arqa district, where Al Majdiah will develop an integrated apartment complex spanning 7,103.61 square meters of land with 25,500 square meters of built-up area. This 30-month project is budgeted at SAR 65.4 million and focuses on mid-to-high-rise multifamily housing. The third initiative involves a residential compound in the Hittin district, encompassing 14,709 square meters of land with 30,764 square meters of built-up area, estimated at SAR 85.1 million with a 36-month development schedule.
All three projects operate under Saudi Arabia's Off-Plan Sales Program (Wafi), a regulatory framework designed to facilitate residential pre-sales and investor confidence. The development structure employs a cost-plus model, whereby Al Majdiah recovers actual construction expenditures plus development, performance, and sales and marketing fees. This arrangement aligns incentives between the developer and the fund sponsor while providing transparency on cost management. The projects are expected to generate positive financial impacts beginning from commencement, supporting near-term earnings and balance sheet optimization for Al Majdiah as units are sold and progress billing occurs.
The aggregate 80,600 square meters of built-up area across the three initiatives significantly expands Al Majdiah's active pipeline and reinforces its market position within Riyadh's residential development sector. The geographic diversification across Olaya, Arqa, and Hittin reflects strategic exposure to multiple submarkets with varying demographic and income profiles, reducing concentration risk and broadening addressable demand.
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