New fund set up to build $500m mixed-use project in Riyadh

SAB Invest, the investment arm of Saudi Awwal Bank (SAB), and Saudi developer Retal have set up a new SAR1.9 billion ($506 million) fund to develop a mixed-use project in Riyadh.

SAB will contribute up to 50 percent to the fund, the lender said in a statement.

The Capital Market Authority-regulated fund is designed to attract institutional and qualified investors seeking exposure to Riyadh’s real estate market.

Yasser Al-Barrak, chief corporate and institutional banking officer at SAB, said the fund reflects the bank’s commitment to supporting developments that contribute to the kingdom’s urban and economic transformation.

The project, Retal Heights, will be developed on a 19,000 square metre site in northern Riyadh, as a premium mixed-use tower project that will address the capital city’s growing demand across the residential, commercial, and hospitality sectors.

In a statement to the Saudi stock exchange, Retal said it will undertake the project’s development management, including overseeing the phases of design, development, execution, marketing and sales.

The developer will receive SAR126 million in development fees and will take an estimated 48 months to complete the project.

The project is the latest large-scale real estate project to be announced for the Saudi capital city.

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

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

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

Further reading:

• Riyad Capital sets up $400m real estate fund for Riyadh project
• Riyadh housing contracts awarded by Royal Commission
• Saudi house price fall speeds up in first quarter