Key Takeaways
- • Al Rajhi Capital and Aramak Real Estate have launched a SAR 1.4 billion (approximately $373 million USD) mixed-use real estate investment fund targeting northern Riyadh's premium market segment.
- • The initial phase spans 41,000 square meters and includes luxury residential units, office space, retail outlets, international hotels, and recreational facilities, with construction already underway.
- • Al Rajhi Capital will serve as fund manager and financier, while Aramak Real Estate leads development operations—a division of labor typical in Gulf-region real estate partnerships.
- • The broader Aramak portfolio encompasses approximately one million square meters of built-up area across northern Riyadh, positioned along strategic arterial roads (Anas Bin Malik and Abu Bakr Al-Siddiq).
- • The partnership aligns with Saudi Vision 2030 objectives and represents Al Rajhi Capital's continued expansion in large-scale, strategically positioned mixed-use developments across the capital.
Summary
Al Rajhi Capital, Saudi Arabia's leading financial services firm and largest equity broker by market share, has partnered with Aramak Real Estate to establish a SAR 1.4 billion real estate investment fund focused on developing a major mixed-use project in northern Riyadh. The fund structure delegates asset management and financing to Al Rajhi Capital while vesting development responsibility with Aramak Real Estate, a partnership model designed to leverage specialized expertise across capital markets and operational real estate execution.
The inaugural phase of development encompasses a 41,000-square-meter property featuring a diversified asset mix: luxury residential units, contemporary office space, retail outlets, branded hotel operations, and recreational amenities. Aramak has already initiated construction activities, indicating project readiness and regulatory clearance to proceed. This phased development approach positions the project for staged value creation and revenue generation as components reach completion and occupy occupancy phases.
The Aramak portfolio extends across northern Riyadh's premium corridors, totaling approximately one million square meters of developable built-up area along Anas Bin Malik and Abu Bakr Al-Siddiq roads—strategically positioned routes that serve commercial and residential demand in the capital's expanding northern sector. Waleed Alrashiad Alhumaid, CEO of Al Rajhi Capital, characterized the partnership as aligned with Saudi Vision 2030 priorities for high-quality, community-oriented urban development. This initiative represents an addition to Al Rajhi Capital's existing portfolio of large-scale mixed-use funds in prime Riyadh locations, reinforcing the firm's institutional position in kingdom-scale real estate capital deployment.
The Sharia-compliant fund structure reflects both partners' commitment to Islamic finance principles while accessing Saudi Arabia's domestic capital base and regional investor pools seeking exposure to premium real estate development anchored to long-term urban infrastructure expansion.
The inaugural phase of development encompasses a 41,000-square-meter property featuring a diversified asset mix: luxury residential units, contemporary office space, retail outlets, branded hotel operations, and recreational amenities. Aramak has already initiated construction activities, indicating project readiness and regulatory clearance to proceed. This phased development approach positions the project for staged value creation and revenue generation as components reach completion and occupy occupancy phases.
The Aramak portfolio extends across northern Riyadh's premium corridors, totaling approximately one million square meters of developable built-up area along Anas Bin Malik and Abu Bakr Al-Siddiq roads—strategically positioned routes that serve commercial and residential demand in the capital's expanding northern sector. Waleed Alrashiad Alhumaid, CEO of Al Rajhi Capital, characterized the partnership as aligned with Saudi Vision 2030 priorities for high-quality, community-oriented urban development. This initiative represents an addition to Al Rajhi Capital's existing portfolio of large-scale mixed-use funds in prime Riyadh locations, reinforcing the firm's institutional position in kingdom-scale real estate capital deployment.
The Sharia-compliant fund structure reflects both partners' commitment to Islamic finance principles while accessing Saudi Arabia's domestic capital base and regional investor pools seeking exposure to premium real estate development anchored to long-term urban infrastructure expansion.
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