Saudi asset management and advisory company Jadwa Investment set up a property fund worth 1 billion Saudi riyals ($266 million) to develop prime residential projects in the kingdom.
Al Dar Investment Fund will develop more than 1,500 residential units in Riyadh, through several apartment complexes aimed at medium- to high-income households.
Jadwa, which set up the closed-end investment vehicle with Al Majdiah Group and Riyad Bank, manages assets worth 35bn riyals.
The assets are in the public market, private equity, property, private credit and fixed income segments.
The Sharia-compliant fund has a provision for two one-year extensions.
Jadwa chief executive and managing director Tariq Al-Sudairy said it was set up in line with the company’s "policy of pursuing diversified investment opportunities across asset classes”.
“We have been very active in the local real estate market where we see strong investment fundamentals.”
The investment vehicle has been set up to capitalise on growing demand for residential property in the kingdom.
Home ownership in Saudi Arabia is one of the central planks of Vision 2030, the kingdom’s economic and social transformation programme.
The country has exceeded its 2020 target of increasing the percentage of home ownership among Saudi citizens to 60 per cent. The government now aims to boost the ratio to 70 per cent by 2030.
The kingdom plans to turn Riyadh into one of the top 10 city-economies in the world.
Saudi Crown Prince Mohammed Bin Salman said in January that the government plans to double the city’s population by 2030.
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Earlier this year, 24 international businesses signed agreements with the Royal Commission for Riyadh City to move their regional headquarters to Saudi Arabia’s capital. Reuters -
Newly constructed towers are seen in Riyadh, Saudi Arabia's capital and main financial hub. AFP -
Construction workers operate at a development site in the King Abdullah Financial District in Riyadh. Bloomberg -
New office space reveals views across the city skyline in Riyadh. Bloomberg -
People sit at a cafe in a mall in Riyadh. AFP -
A street vendor sells fruit and vegetables on a roadside in Riyadh. Bloomberg -
People spend time at a mall near a closed food court in the Saudi Arabian capital Riyadh. AFP -
A customer shops in an Ikea AB store in Riyadh. Bloomberg -
An employee carries pizzas in boxes for delivery to customers outside a Maestro Pizza food store in Riyadh. Bloomberg -
A section of King Fahad road in the Saudi capital Riyadh. AFP -
A general view of Riyadh. AFP
Riyadh has a population of 7.5 million.
The kingdom is investing $220bn to transform the capital and expects to attract a similar level of investment from the private sector, according to Fahd Al Rasheed, president of the Royal Commission for Riyadh City.
Jadwa's managing director and property boss Haitham Al Ghannam said the record demand shown during the fund’s offering period demonstrated "the attractiveness of the local residential real estate market today, particularly in Riyadh, where we intend to expand further”.
