Real Estate development makes up 30% of Tarmeez Capital's financing portfolio 

Salem Aljawini, Board Member of Tarmeez Capital 

Salem Al-Jaweini, Board Member of Tarmeez Capital, said the firm’s financing portfolio spans over 10 sectors, including healthcare, education, logistics, and tourism, with real estate development making up nearly 30% of the total.

Speaking at the Cityscape Global 2024 Conference, Aljawini told Argaam that strong growth in the portfolio in 2024 versus 2023, with real estate development financing surging over 1,000% year-over-year (YoY).

Aljawini explained that Tarmeez, a fintech firm licensed by the Capital Market Authority (CMA), facilitates financing for companies and developers through Islamic sukuk issuance, covered via its platform with contributions from individual and institutional investors.

He highlighted the company’s financing solutions for businesses and investment opportunities for investors. Services for developers include funding for residential, commercial, and raw land projects.

The default rate among real estate developers is 0%, he said, noting developers must own the land for their projects, possess necessary permits, and present a detailed feasibility study.

Despite higher interest rates, Aljawini said demand from real estate developers remains strong due to the need to boost supply amid rising residential and commercial project demand.

He expects a potential interest rate decline to drive significant growth in real estate financing for developers, helping bridge the supply-demand gap.

Saudi Arabia’s real estate sector is growing, boosted by major upcoming events like the Asian Cup, Expo 2030, and the World Cup, which support market expansion. Aljawini sees the sector as key to the economy, underpinning several critical industries.

He compared the Saudi market to the world’s top ten real estate markets, emphasizing its potential, especially in residential development, where the annual shortfall exceeds 10,000 units, driven by demand in major cities like Riyadh and Jeddah.

Aljawini highlighted fintech’s role as an innovative solution, providing flexible financing options and bridging funding gaps for companies.