Riyad Capital Launches Riyad Real Estate Development Fund – Dar Al Salam

RIYADH, SAUDI ARABIA – Riyad Capital has signed an agreement with Princess Munira bint Abdullah bin Faisal Al Saud and Naif Alrajhi Investment Company to establish a real estate development fund valued at approximately SAR1.5 billion ($400 million), further strengthening investment activity within Riyadh’s growing mixed-use development sector.

The new fund, named the Riyad Real Estate Development Fund – Dar Al Salam, will support the delivery of a large-scale mixed-use project strategically located along Al Takhassusi Road in Riyadh.

The development will span approximately 32,000 square metres and comprise hospitality, office, residential and retail components designed as an integrated urban destination aligned with the city’s ongoing transformation initiatives.

The project has been classified as a Transit-Oriented Development (TOD) and is positioned approximately 250 metres from Al Takhassusi Metro Station, supporting Riyadh’s broader urban mobility and sustainability objectives.

The TOD approach is increasingly becoming a central element of Saudi Arabia’s urban planning strategy, particularly across Riyadh, where infrastructure expansion and metro connectivity are reshaping future development patterns.

The project is intended to create a highly connected urban environment that promotes walkability, accessibility and mixed-use integration while responding to rising demand for quality developments across the Saudi capital.

The launch comes amid accelerating development activity across Riyadh as the city continues implementing major infrastructure, transport and real estate initiatives linked to Saudi Vision 2030.

The capital has witnessed growing institutional investment in mixed-use projects as developers and asset managers seek to capitalise on increasing demand for integrated lifestyle destinations and premium urban environments.

Princess Munira bint Abdullah bin Faisal Al Saud said: “This project reflects the importance of the strategic location on Al-Takhassusi Road and the value of the partnership with Riyad Capital and Naif AlRajhi Investment Company to develop a project that aligns with the evolving urban landscape of Riyadh. We look forward to this development becoming a distinctive addition that supports quality of life and keeps pace with the city’s growing needs.”

Riyad Capital expands TOD portfolio

The project also represents Riyad Capital’s fourth Transit-Oriented Development initiative, reinforcing the company’s continued focus on strategically located urban projects integrated with public transportation infrastructure.

Abdullah Abdulrahman Alshwer, PhD, CFA, CEO of Riyad Capital, stated: “This project represents an extension of our presence in the real estate sector and marks a new step in developing distinctive destinations in strategic locations across Riyadh, supported by its prime location on Al-Takhassusi Road. This partnership with Princess Munira bint Abdullah bin Faisal Al Saud and Naif AlRajhi Investment Company reflects an integrated model that combines development expertise with investment management capabilities, enabling the delivery of a project that elevates the concept of mixed-use developments and aligns with evolving market expectations.

“This fund is part of our strategy to offer carefully structured investment opportunities built on strong fundamentals, enhancing value for investors. The project also represents Riyad Capital’s fourth Transit Oriented Development (TOD) project and contributes to supporting the objectives of Saudi Vision 2030, particularly in urban development and improving quality of life.”

Focus on long-term urban value

The development is expected to combine commercial activity, hospitality and residential living within a single integrated destination aimed at supporting long-term urban and economic growth.

Mixed-use projects continue to gain momentum across Saudi Arabia as cities increasingly prioritise sustainable development models capable of enhancing liveability while supporting economic diversification goals.

Naif Saleh AlRajhi, Chairman and CEO of Naif AlRajhi Investment Company, added: “We see this project as a valuable addition to our real estate development portfolio, through which we aim to deliver a project that reflects high quality standards and meets the evolving expectations of the Riyadh market. This project also reflects our direction toward developing projects in prime locations, in partnership with Riyad Capital as a leading real estate investment firm, contributing to the delivery of an integrated experience aligned with Vision 2030.”

The project forms part of broader efforts to develop integrated urban destinations aligned with Riyadh’s long-term growth and sustainability ambitions.

Officials said the development is intended to contribute to urban and economic expansion while generating sustainable long-term returns for investors.

The initiative also reflects Riyad Capital’s strategy of creating institutional-grade real estate investment opportunities through structured investment solutions, alongside Naif Alrajhi Investment’s focus on expanding its portfolio through strategic partnerships and high-quality developments.

As Riyadh continues undergoing one of the region’s largest urban transformations, transit-linked mixed-use developments are expected to play an increasingly important role in shaping the future of the Saudi capital’s real estate landscape.