New Murabba, a unit of Saudi sovereign wealth fund PIF and the master developer of Riyadh’s modern downtown, has signed an agreement with Almana Medical Group to develop a major general hospital within its mega destination in the kingdom at a total investment of SAR1 billion ($266 million).

The agreement marks the first investment package activated under New Murabba’s masterplan, representing a significant milestone as the development moves towards the execution phase and the delivery of strategic infrastructure and community assets, said a statement from PIF.

Under the partnership, Almana Medical Group will develop an advanced 200-bed general hospital on a site spanning more than 16,000 sq m. 

New Murabba is being developed as a major mixed-use urban destination in Riyadh, with plans to accommodate more than 280,000 residents through integrated neighbourhoods supported by residential, commercial, leisure and community facilities.

The hospital development supports New Murabba’s 15-minute community concept, enabling residents to access essential services and amenities within a short walk or ride. The project also aligns with Saudi Arabia’s healthcare transformation agenda, Quality of Life objectives and the wider ambitions of Saudi Vision 2030.

Eng. Sabah Barakat, Acting CEO of New Murabba, said the agreement represents an important step in transforming the masterplan into tangible and investable projects, while demonstrating growing investor confidence in the destination’s long-term development vision.

The hospital will play a vital role within New Murabba’s broader ecosystem of community services and that the agreement is expected to be the first of several strategic investment partnerships to be announced as the project progresses into its execution phase, he stated.

The facility will be located near Prince Turki bin Abdulaziz Al Awal Road, within one of New Murabba’s mixed-use districts.

The hospital will serve as a key healthcare and community asset within the destination and will be integrated with the surrounding residential, commercial and pedestrian network.

The SAR1 billion investment will support the development of a future-focused healthcare facility designed to meet the needs of New Murabba’s growing resident and visitor population, said the statement. 

The project forms part of a wider network of healthcare, education and community infrastructure planned across the destination, it added.