Alramz to set up SAR 650M real estate fund for Jeddah project

Logo of Alramz Real Estate Co.

Alramz Real Estate Co. signed today, March 31, an agreement to establish a Shariah-compliant real estate investment fund with Oud Capital, to develop the “Al Ramz Front” residential project in Al Firdous district, Jeddah.

In a statement to Tadawul, the company said the fund’s target size is approximately SAR 650 million, with Alramz contributing around SAR 81.6 million as an investor in the fund.

The project aims to develop an integrated residential community comprising nearly 900 housing units, which will be sold to end beneficiaries.

Under the agreement, Alramz will contribute land plots with a total area of about 47,800 square meters, valued at SAR 215.1 million, as an in-kind contribution to the fund.

The company will serve as the fund’s developer and exclusive marketer, with the development contract valued at approximately SAR 268.8 million, under which Al Ramz will earn a 10% development fee of about SAR 26.8 million, along with a marketing fee equal to 2.5% of the project’s total sales.

Alramz expects the project to support its investment portfolio and sustainable growth, noting that the deal is likely to enhance its financial performance over the period from 2026 to 2029.

The company also highlighted a related-party transaction with Oud Capital, in which it holds a 25% stake, represented by Abdulmalik Alrasheed, who serves on the boards of both companies.