A collaboration between Saudi Arabia’s Alistithmar Capital and Ezdihar Real Estate Development Co. has been announced, heralding the establishment of a property fund valued at SR1.1 billion (approximately $293 million). The initiative is poised to enhance the commercial and office real estate sector in Riyadh.
Alistithmar Capital, which operates under the umbrella of Saudi Investment Bank, disclosed that the fund’s objective is to nurture investor capital growth. This will be achieved by securing usufruct rights to a land parcel spanning 103,000 square meters located within the confines of King Saud University on Prince Turki Al-Awwal Road in Riyadh. The plot is earmarked for transformation into a lucrative commercial office complex.
The esteemed CEO of Alistithmar Capital, Khaled Abdulaziz Al-Rayes, expressed that the partnership with Ezdihar is a strategic move to align with common goals in the real estate domain and to provide investors with opportunities that resonate with their aspirations and the dynamic trends of the property market.
Al-Rayes emphasized the company’s commitment to presenting top-tier investment options in the real estate sphere, creating funds that are thoughtfully structured and tailored to the specific demands of each project. Such meticulous planning is key to ensuring substantial benefits and optimizing returns for investors.
Abdulmohsen Fawaz Al-Hokair, the CEO of Ezdihar, remarked on the significance of the alliance with Alistithmar Capital. He highlighted the intention to proffer distinctive investment possibilities in the realm of real estate, congruent with Ezdihar’s mission to deliver quality products that align with customer expectations.
This recent agreement is reminiscent of Alistithmar Capital’s previous collaboration in March 2023 with Safa Investment Co., which involved the launch of multiple real estate funds. The inaugural fund, worth $292.9 million, marked the beginning of their joint ventures in the sector.
The collaboration aims to support Saudi Arabia’s property market growth, with funds targeting residential developments in key urban areas, particularly Riyadh. The strategy includes acquiring land to develop premium residential complexes and offering them as move-in ready dwellings.
In the context of regional industry accolades, Alistithmar Capital has been recognized by Forbes Middle East, ranking 6th among the largest asset management firms in Saudi Arabia and 11th in the Middle East. Their total assets under management are estimated to be around SR32 billion, according to Forbes Middle East’s 2024 list.