Key Takeaways
- • Alramz Real Estate establishes SAR 650 million ($175.58 million) Shariah-compliant real estate investment fund with Oud Capital to develop the Al Ramz Front residential project in Jeddah's Al Firdous district, signed March 31, 2026.
- • Project comprises 900 integrated residential units on 47,800 square meters of land; Alramz contributes SAR 81.6 million as fund investor plus land valued at SAR 215.1 million as in-kind contribution.
- • Alramz retains developer and exclusive marketer roles under SAR 268.8 million development contract, earning 10% development fee (SAR 26.8 million) plus 2.5% marketing fee on total project sales.
- • Related-party transaction disclosed: Oud Capital is 25% owned by Alramz, with Abdulmalik Alrasheed serving on boards of both entities; project expected to support company's portfolio growth through 2029.
- • Announcement aligns with Alramz's diversification strategy and Saudi Vision 2030 objectives, following February 2026 agreements for residential developments in Riyadh (with ROSHN Group) and Makkah (SAR 418 million investment).
Summary
Alramz Real Estate Company signed an agreement on March 31, 2026, with Oud Capital to establish a SAR 650 million Shariah-compliant real estate investment fund for developing the Al Ramz Front residential project in the Al Firdous district of north Jeddah. The fund will finance construction of approximately 900 residential housing units designed as an integrated community on land totaling 47,800 square meters, addressing demand for modern residential developments in prime Jeddah locations.
Alramz's capital structure in the fund comprises two components: a direct equity investment of SAR 81.6 million and an in-kind contribution of land plots valued at SAR 215.1 million. Beyond its investor role, Alramz secured the developer and exclusive marketing positions under a development contract valued at SAR 268.8 million. The company will earn a 10% development fee of approximately SAR 26.8 million plus a 2.5% marketing fee calculated on the project's total sales revenue.
The transaction involves a related-party relationship that Alramz disclosed to the Saudi stock exchange (Tadawul). Oud Capital is 25% owned by Alramz, and Abdulmalik Alrasheed serves on the boards of both organizations, creating a potential conflict of interest that regulators and investors will monitor. Despite this structural relationship, Alramz management believes the arrangement will strengthen partnerships with financial institutions and enhance the company's financial performance over the 2026-2029 period.
This Jeddah project represents part of a broader expansion strategy announced in February 2026. In the same month, Alramz signed separate agreements to develop residential properties in Riyadh (in partnership with PIF-owned ROSHN Group for the Sedra mega project) and in Makkah (through Ramz Al Hijaz Fund managed by Al Rajhi Capital, with total investment of SAR 418 million). The company frames these initiatives as supporting Saudi Vision 2030 objectives while diversifying its development and investment tools across multiple geographic markets and asset classes.
Alramz's capital structure in the fund comprises two components: a direct equity investment of SAR 81.6 million and an in-kind contribution of land plots valued at SAR 215.1 million. Beyond its investor role, Alramz secured the developer and exclusive marketing positions under a development contract valued at SAR 268.8 million. The company will earn a 10% development fee of approximately SAR 26.8 million plus a 2.5% marketing fee calculated on the project's total sales revenue.
The transaction involves a related-party relationship that Alramz disclosed to the Saudi stock exchange (Tadawul). Oud Capital is 25% owned by Alramz, and Abdulmalik Alrasheed serves on the boards of both organizations, creating a potential conflict of interest that regulators and investors will monitor. Despite this structural relationship, Alramz management believes the arrangement will strengthen partnerships with financial institutions and enhance the company's financial performance over the 2026-2029 period.
This Jeddah project represents part of a broader expansion strategy announced in February 2026. In the same month, Alramz signed separate agreements to develop residential properties in Riyadh (in partnership with PIF-owned ROSHN Group for the Sedra mega project) and in Makkah (through Ramz Al Hijaz Fund managed by Al Rajhi Capital, with total investment of SAR 418 million). The company frames these initiatives as supporting Saudi Vision 2030 objectives while diversifying its development and investment tools across multiple geographic markets and asset classes.
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