Key Takeaways
- • Alramz Real Estate Co. established a SAR 2.5 billion Shariah-compliant real estate investment fund on December 29, 2025, in partnership with SNB Capital (fund manager) and AWJ Real Estate Co. (landowner) for the Rabwa Alramz residential project in Riyadh's Al-Safa District.
- • The project comprises 1,317 residential units (villas, duplexes, and townhouses) across 219,130 square meters, with Alramz contributing SAR 105 million as a stakeholder and serving as exclusive developer and marketer.
- • Alramz will generate revenue through a 10% development fee on an estimated SAR 1.1 billion development contract plus 2.5% marketing fees on total project sales, with financial performance expected to benefit across 2026-2029.
- • The TASI-listed company disclosed no related-party involvement in the transaction and expects the deal to strengthen its investment portfolio while supporting sustainable growth in Riyadh's residential real estate market.
Summary
Alramz Real Estate Co., a Tadawul-listed developer, signed an agreement on December 29, 2025, to establish a Shariah-compliant real estate investment fund valued at SAR 2.5 billion. The fund, managed by SNB Capital and anchored by landowner AWJ Real Estate Co., will finance development of Rabwa Alramz, a large-scale residential community in Riyadh's Al-Safa District. The project spans 219,130 square meters and will deliver approximately 1,317 residential units, including villas, duplexes, and townhouses targeted at end-user buyers.
Alramz committed SAR 105 million as a fund stakeholder while securing the exclusive development and marketing mandate for the project. The company's development contract and associated fees are valued at approximately SAR 1.1 billion, structured to generate revenue through a 10% development fee and 2.5% marketing fee on total project sales. This dual fee structure provides Alramz with predictable revenue streams while aligning the developer's interests with successful project execution and sales.
The company emphasized that no related parties were involved in the transaction structure, underscoring arm's-length terms with external partners SNB Capital and AWJ Real Estate. Alramz characterized the Rabwa Alramz project as reflecting its strategic vision to deliver high-quality residential products aligned with Riyadh's market needs. The developer expects the transaction to enhance financial performance through the four-year period from 2026 through 2029, with material developments to be disclosed to the market as they occur.
This transaction represents a significant capital commitment within Alramz's portfolio expansion strategy, leveraging third-party fund capital to accelerate residential development without proportional balance-sheet strain. The Shariah-compliant fund structure positions the project to attract institutional and retail investors seeking Islamic-compliant real estate exposure within Saudi Arabia's high-growth residential sector.
Alramz committed SAR 105 million as a fund stakeholder while securing the exclusive development and marketing mandate for the project. The company's development contract and associated fees are valued at approximately SAR 1.1 billion, structured to generate revenue through a 10% development fee and 2.5% marketing fee on total project sales. This dual fee structure provides Alramz with predictable revenue streams while aligning the developer's interests with successful project execution and sales.
The company emphasized that no related parties were involved in the transaction structure, underscoring arm's-length terms with external partners SNB Capital and AWJ Real Estate. Alramz characterized the Rabwa Alramz project as reflecting its strategic vision to deliver high-quality residential products aligned with Riyadh's market needs. The developer expects the transaction to enhance financial performance through the four-year period from 2026 through 2029, with material developments to be disclosed to the market as they occur.
This transaction represents a significant capital commitment within Alramz's portfolio expansion strategy, leveraging third-party fund capital to accelerate residential development without proportional balance-sheet strain. The Shariah-compliant fund structure positions the project to attract institutional and retail investors seeking Islamic-compliant real estate exposure within Saudi Arabia's high-growth residential sector.
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