Saudi-based Al Ramz Real Estate Company has announced that it has signed an agreement with Oud Capital for the launch of a new shariah-compliant real estate investment fund with a target size of more than SAR1 billion ($267 million) to develop residential projects owned by the company.

The fund, which will be managed by Oud Capital and wholly owned by Al Ramz, will develop a portfolio of land covering 70,516 sq m and comprising more than 800 residential units, said the company in its filing to Saudi bourse Tadawul.

The development contract is valued at about SAR391 million. 

As per the agreement, Al Ramz will receive development fees of around SAR39 million, equivalent to 10% of the contract value, in addition to marketing fees of 2.5% of total project sales.

The fund is expected to complete development and sales over approximately three years. Al Ramz said the transaction is expected to have a positive impact on its financial performance between 2026 and 2029, it added.-TradeArabia News Service