Saudi Firms Launch $365M Fund to Boost Real Estate Development
Riyadh: The real estate sector in the Eastern Province of Saudi Arabia is poised for significant growth following the announcement of a new SR1.37 billion ($365 million) fund aimed at stimulating investments in this burgeoning sector. This initiative is a collaborative effort between Mohammed Al-Nahdi Real Estate and Alinma Investment, the investment arm of Alinma Bank.
The partners have introduced the Alinma-Al-Nahdi Real Estate Fund, dedicated to developing prime land covering over 1.6 million square meters in the Eastern Province. This ambitious move is set to revolutionize the real estate landscape in the region, focusing on creating premier destinations for housing and real estate investment.
Abdullah bin Salmeen Al-Nahdi, CEO of Mohammed Al Nahdi Real Estate, highlighted his firm’s commitment to transforming the Kingdom’s property sector through this strategic initiative. “Our dedication to enriching our investment portfolio by introducing distinctive projects will address the housing demands laid out in Saudi Arabia’s 2030 Vision,” he stated. This development plan encompasses integrated residential communities, functional public buildings, bustling commercial zones, and engaging entertainment areas. The aim is to forge a safe and comfortable residential atmosphere that enriches the region’s living standards.
Al-Nahdi further noted that a sales permit for the project has been secured, signaling a phased selling approach during the development process. This strategy will allow potential investors and buyers to explore various flexible ownership options that align with their needs and aspirations.
Mazin Fawaz Baghdadi, CEO and Managing Director at Alinma Investment, discussed the fund’s investment ethos, which centers on capital growth over the medium term by channeling investments directly into the Kingdom’s real estate market. Baghdadi also highlighted the pivotal role that real estate development funds play in stimulating investment and enhancing the supply of developed land through strategic developmental and urban projects in the Eastern Province.
This initiative is perfectly aligned with the objectives of Saudi Arabia’s Vision 2030, aiming to augment the supply of housing units and address the growing demands of the population. The land earmarked for development enjoys a strategic location along King Abdulaziz Road and GCC Road in Dhahran, near the Ajyal residential district – one of Saudi Aramco’s exemplary model housing projects. This placement ensures ideal connectivity to significant landmarks across Dammam, Alkhobar, and Dhahran.
Mohammed Al-Nahdi Real Estate, headquartered in Alkhobar and founded in 1993, carries an impressive portfolio with a range of notable projects. Alinma Investment, a leading entity established by Alinma Bank, is renowned for its comprehensive suite of Shariah-compliant investment services and products. Utilizing state-of-the-art communication and technological advancements, the firm stands at the forefront of innovation in the investment domain.
