Al-Ramz Real Estate Company has announced the signing of an agreement to establish a Sharia-compliant investment fund on April 23. This fund will be managed by Al-Ahli Financial Company and aims to develop its residential project 'Ramz Al-Ra'id' in the Al-Ra'id neighborhood of Riyadh, covering an area of 26,590 square meters with a targeted size of 650 million riyals.
The company clarified in a statement published on 'Tadawul Saudi Arabia' that it will be the main owner of the fund and will also take on the role of developer and exclusive marketer for the project. The project aims to create a comprehensive residential community comprising approximately 500 housing units (apartments), which will be sold to end beneficiaries.
Event Details
Al-Ramz Real Estate Company indicated that the final value of the development contract will be determined after completing the engineering plans and obtaining the necessary licenses. It also noted that development fees will amount to 7% of the total contract value, while the company will receive a marketing and sales commission of 2.5% of the total sales of the fund.
The company expects this project to contribute to enhancing its investment portfolio and supporting sustainable growth plans, with potential positive impacts on its financial performance during the period from 2026 to 2029.
Background & Context
This step comes as part of Saudi Arabia's efforts to enhance the housing sector and meet the growing market demands. The 'Ramz Al-Ra'id' project is part of the Kingdom's Vision 2030, which aims to improve the quality of life and provide diverse housing options for citizens.
The Saudi government seeks to increase the homeownership rate among citizens, as the country experiences significant population growth, necessitating the development of new housing projects to meet the needs of residents.
Impact & Consequences
This project is expected to create new job opportunities and boost economic activity in the region. It will also help improve local infrastructure and enhance property values in the Al-Ra'id neighborhood.
These housing projects are part of a broader strategy aimed at improving the living standards in the Kingdom, reflecting the government's commitment to providing a suitable living environment for citizens.
Regional Significance
The experience of Al-Ramz Real Estate serves as a model in the Arab region, where many countries seek to enhance the housing sector and develop new residential projects. This initiative could inspire other companies in the region to invest in similar projects, contributing to the enhancement of the local economy.
In light of the economic challenges facing some Arab countries, these projects represent an opportunity to strengthen economic and social stability in the region.