Riyadh Development to sell fund units to Sumou Holding for SAR 184.5M

The SAR 184.5 million transaction will be settled in three installments over up to 18 months.

Riyadh Development Co. said it signed an agreement on April 22 to sell all of its units in Al Arabi Riyadh Development Real Estate Fund to Sumou Holding Co. for SAR 184.5 million, according to a statement to Tadawul.

The consideration will be paid in three installments over a period not exceeding 18 months, backed by a promissory note for the full amount. The deal carries no preferential terms and remains subject to shareholder approval.

The company said the transaction will have no impact on its 2026 income statement, as the full profit was recognized in 2025 based on the latest approved valuation.

The original investment stood at about SAR 182.5 million as of Jan. 9, 2025, with the valuation reaching SAR 184.5 million at the end of 2025.

Abdulrahman Alqahtani, a related member, is a board member in both companies.

In October 2024, Riyadh Development signed a contract to act as the developer of a real estate investment fund worth over SAR 2.1 billion, managed by ANB Capital. The four-year contract included developing the infrastructure of a project spanning 1.8 million square meters in eastern Riyadh.

The company announced in February 2026 the termination of the fund’s development management agreement.