Key Takeaways
- • Al Ramz Real Estate and SNB Capital established a Shariah-compliant real estate investment fund with a target size of SAR 650 million, with SNB Capital serving as fund manager and Al Ramz as the principal unitholder.
- • Al Ramz will receive a 10% development fee (estimated at SAR 120 million) and a 2.5% management component, establishing a structured fee arrangement aligned with fund performance.
- • The fund will invest in Saudi Arabian real estate assets, listed real estate companies on Tadawul, and liquid funds, positioning it to capitalize on diversified opportunities within the kingdom's real estate sector.
- • Al Ramz Real Estate completed its IPO in December 2025 at SAR 70 per share (SAR 900 million total offering), with institutional demand reaching 11.1x oversubscription, demonstrating strong market confidence in the company ahead of this fund launch.
- • Al Ramz operates a diversified portfolio of over 8,000 units across 40 projects in six Saudi cities, providing operational scale and expertise for the fund's real estate deployment strategy.
Summary
Al Ramz Real Estate Company and SNB Capital, Saudi Arabia's largest asset manager, have formalized an agreement to establish a Shariah-compliant real estate investment fund capitalized at SAR 650 million. SNB Capital will assume the role of fund manager, while Al Ramz Real Estate serves as the principal unitholder. The fund structure reflects a partnership combining SNB Capital's asset management expertise with Al Ramz's operational real estate capabilities and market position.
Under the agreement terms, Al Ramz Real Estate will receive a 10% development fee estimated at SAR 120 million, plus a 2.5% management component, creating a performance-linked incentive structure. The fund's investment mandate encompasses Saudi Arabian real estate assets, publicly listed real estate companies trading on the Tadawul exchange, and liquid funds—enabling diversified capital deployment across the kingdom's real estate sector.
The fund launch follows Al Ramz Real Estate's successful December 2025 IPO, which SNB Capital managed as lead manager, financial advisor, bookrunner, and underwriter. The IPO offered 12.8 million shares (30% of post-capital-increase share capital) at SAR 70 per share, generating SAR 900 million in total offering value. Institutional investors demonstrated exceptional demand with 11.1x oversubscription (SAR 9,964 million), while retail subscription coverage reached 36% of allocated shares. Al Ramz shares commenced trading on Tadawul's Main Market (ticker: 4327) in December 2025.
Al Ramz Real Estate enters this fund partnership with substantial operational scale: a diversified portfolio encompassing more than 8,000 units across 40 projects spanning six Saudi cities. This asset base, combined with SNB Capital's institutional fund management capabilities, positions the SAR 650 million fund to address demand within Saudi Arabia's real estate sector while supporting Vision 2030 development objectives.
Under the agreement terms, Al Ramz Real Estate will receive a 10% development fee estimated at SAR 120 million, plus a 2.5% management component, creating a performance-linked incentive structure. The fund's investment mandate encompasses Saudi Arabian real estate assets, publicly listed real estate companies trading on the Tadawul exchange, and liquid funds—enabling diversified capital deployment across the kingdom's real estate sector.
The fund launch follows Al Ramz Real Estate's successful December 2025 IPO, which SNB Capital managed as lead manager, financial advisor, bookrunner, and underwriter. The IPO offered 12.8 million shares (30% of post-capital-increase share capital) at SAR 70 per share, generating SAR 900 million in total offering value. Institutional investors demonstrated exceptional demand with 11.1x oversubscription (SAR 9,964 million), while retail subscription coverage reached 36% of allocated shares. Al Ramz shares commenced trading on Tadawul's Main Market (ticker: 4327) in December 2025.
Al Ramz Real Estate enters this fund partnership with substantial operational scale: a diversified portfolio encompassing more than 8,000 units across 40 projects spanning six Saudi cities. This asset base, combined with SNB Capital's institutional fund management capabilities, positions the SAR 650 million fund to address demand within Saudi Arabia's real estate sector while supporting Vision 2030 development objectives.
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