Key Takeaways
- • Alramz Real Estate and Assayel Arabia established a SAR 370 million Shariah-compliant real estate investment fund ("Alahli Alramz Assayel Residential Fund") to finance the Ramz Al Raed 2 residential project in Riyadh's Al Raed district.
- • The fund will develop approximately 290 residential apartments on a 15,000 square meter plot, with Alramz receiving a 10% development fee and 2.5% marketing and sales commission on total contract value.
- • SNB Capital serves as fund manager, while Alramz and Assayel Arabia split ownership evenly with Alramz acting as exclusive developer and marketer, demonstrating a structured partnership model aligned with institutional investment standards.
- • The fund represents part of Alramz's broader capital-raising pipeline; the company previously announced a SAR 650 million fund for its Al Ramz Front residential project in Jeddah (April 2026) and secured a SAR 91 million contract with Roshn Group (February 2026).
- • The transaction supports Saudi Arabia's Vision 2030 initiative through institutionalization and development of the Kingdom's real estate sector via TASI-listed company partnerships.
Summary
Alramz Real Estate Co. has signed an agreement with Assayel Arabia to establish a SAR 370 million Shariah-compliant real estate investment fund, with SNB Capital appointed as fund manager. The partnership, disclosed via Tadawul filing on June 8, 2026, targets development of the "Ramz Al Raed 2" residential project located in Riyadh's Al Raed district, which will comprise approximately 290 residential apartments built on a 15,000 square meter plot.
Ownership of the fund is split evenly between Alramz Real Estate and Assayel Arabia, with Alramz serving dual roles as both project developer and exclusive marketer. The compensation structure is clearly defined: Alramz will receive a 10% development fee calculated on total contract value, plus a 2.5% marketing and sales commission. SNB Capital's appointment as fund manager indicates institutional-grade governance aligned with investor expectations for Shariah-compliant real estate vehicles in the Saudi market.
This transaction fits within a demonstrable capital-raising strategy by Alramz. In April 2026, the company announced plans for a SAR 650 million real estate fund targeting its Al Ramz Front residential project in Jeddah, which will develop an integrated residential community comprising 900 housing units. Additionally, in February 2026, Alramz secured a SAR 91 million, 36-month design and build contract with PIF-backed developer Roshn Group for 240 housing units. This pipeline expansion reflects accelerating demand for institutionalized real estate financing in the Kingdom.
The structured partnership and Shariah-compliant vehicle design underscore alignment with Vision 2030 objectives to professionalize and institutionalize Saudi Arabia's real estate sector. By leveraging TASI-listed company participation and dedicated fund management, the transaction supports broader market infrastructure development aimed at attracting institutional capital to Kingdom-based residential development.
Ownership of the fund is split evenly between Alramz Real Estate and Assayel Arabia, with Alramz serving dual roles as both project developer and exclusive marketer. The compensation structure is clearly defined: Alramz will receive a 10% development fee calculated on total contract value, plus a 2.5% marketing and sales commission. SNB Capital's appointment as fund manager indicates institutional-grade governance aligned with investor expectations for Shariah-compliant real estate vehicles in the Saudi market.
This transaction fits within a demonstrable capital-raising strategy by Alramz. In April 2026, the company announced plans for a SAR 650 million real estate fund targeting its Al Ramz Front residential project in Jeddah, which will develop an integrated residential community comprising 900 housing units. Additionally, in February 2026, Alramz secured a SAR 91 million, 36-month design and build contract with PIF-backed developer Roshn Group for 240 housing units. This pipeline expansion reflects accelerating demand for institutionalized real estate financing in the Kingdom.
The structured partnership and Shariah-compliant vehicle design underscore alignment with Vision 2030 objectives to professionalize and institutionalize Saudi Arabia's real estate sector. By leveraging TASI-listed company participation and dedicated fund management, the transaction supports broader market infrastructure development aimed at attracting institutional capital to Kingdom-based residential development.
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