Riyad Capital, Saudi Railway Launch $1.6B TOD Real Estate Fund in Makkah

MAKKAH, Saudi Arabia – October 21, 2025: Riyad Capital, one of Saudi Arabia’s leading asset managers, has announced a partnership with the Saudi Railway Company (SAR) to launch a $1.6 billion (SAR 6 billion) real estate fund dedicated to developing a large-scale, mixed-use project in Makkah.

The project will be built on a 90,000 sq m site in the Al Rusifah district, adjacent to the Haramain High-Speed Railway Station, and will adopt the Transit Oriented Development (TOD) model, an internationally recognized approach that integrates urban living, commerce, and transport infrastructure to create sustainable and connected communities.

Transforming Makkah’s Urban Landscape

In a joint statement, the two entities highlighted that the development will include a mix of residential, commercial, and hospitality facilities, creating a dynamic, multi-purpose hub that enhances connectivity and supports Makkah’s broader urban development goals.

The collaboration underscores Riyad Capital’s ongoing role in advancing strategic real estate initiatives in the kingdom’s holy cities, in line with Saudi Vision 2030, which emphasizes economic diversification, infrastructure development, and sustainable growth.

Strategic Partnership for Vision 2030

Dr. Abdullah Alshwer, CEO of Riyad Capital, described the initiative as a pivotal step in expanding the company’s footprint within Saudi Arabia’s real estate sector.

“This project marks a strategic milestone in Riyad Capital’s efforts to strengthen its presence in the real estate development sector, particularly in cities of religious and economic significance,” said Alshwer. “Our collaboration with SAR embodies a shared vision to transform the project site into a modern urban destination aligned with Makkah’s development aspirations, while providing promising investment opportunities.”

Advancing Infrastructure and Investment

The fund represents a major advancement in leveraging transit-oriented urban design to stimulate economic growth and sustainable urbanization. By developing directly around one of the kingdom’s busiest transport corridors, the project is expected to attract investors, visitors, and residents alike, positioning Makkah as a model for future mixed-use developments across Saudi Arabia.