Riyad Capital sets up $400m real estate fund for Riyadh project

A real estate fund is being established in Saudi Arabia to develop a transit-oriented development (TOD) in Riyadh.

Asset manager Riyad Capital, Naif AlRajhi Investment Company and Princess Munira bint Abdullah bin Faisal Al Saud, a member of the Saudi royal family, have signed an agreement to establish the $400 million (SAR 1.5 billion) Dar Al Salam real estate fund to develop a mixed-use project in Riyadh.

The project spans 32,000 square meters and is located 250 meters from Al-Takhassusi Metro Station.

Projects designated TOD focus on residential, commercial and leisure spaces within walking distance of public transport.

No details were disclosed on the investment share of each party or project details.

Riyad Capital CEO Abdullah Abdulrahman Alshwer said the project will support the objectives of Saudi Vision 2030, particularly in urban development and improving the quality of life.

Riyad Capital’s real estate portfolio comprises properties across three continents, with a total value exceeding $6 billion. As of December 2025, it had $26 billion in assets under management and more than $279 billion in assets under custody.

In May the Royal Commission for Riyadh City awarded two contracts totaling $637 million for the development of three large land plots in the capital.

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The projects are part of a raft of measures to bring down the cost of housing in the capital, which include a five-year rent freeze and a hike on taxes for vacant or undeveloped land.

In a rare public address in September Crown Prince Mohammed bin Salman said that the rise in housing costs in recent years had been “unacceptable”.

However, the Saudi Contractors Authority said in February that the total value of contracts issued across the kingdom in 2025 was less than $30 billion, almost 60 percent below the $71 billion issued in 2024.