Makkah, Saudi Arabia — Umm Al Qura for Development and Construction (Masar) has signed a non-binding MoU with Al Jazira Capital and Naif Saleh Abdulaziz Al Rajhi Investment Company to establish a private real estate fund with a targeted capital of SAR 1.4 billion.
In a statement to Tadawul Saudi on Tuesday, Masar explained that the fund will focus on developing two land plots within the Masar Destination project. The sites will be used to construct hotel, residential, and commercial units to support Makkah’s growing tourism and real estate sectors.
Masar Real Estate Fund MoU Details
The three parties have agreed on their roles. Al Jazira Capital will be the fund manager, while Al Rajhi Investment will be the developer. Masar will provide the land plots as in-kind contributions.
Additionally, the developer will contribute both cash and in-kind assets. The parties will finalize ownership percentages once the fund is officially established.
The MoU remains valid for six months from the signing date or until the fund is set up, whichever comes first. They can extend the agreement if all parties provide written consent.
Masar confirmed that it will announce any material updates as soon as they occur.
The Saudi Standard’s View: Masar Real Estate Fund MoU Reflects Market Confidence in Makkah
The new Masar real estate fund MoU highlights growing institutional confidence in Makkah’s property market. By collaborating with Al Jazira Capital and Al Rajhi Investment, Masar can attract capital and accelerate development within the Masar Destination.
However, the agreement’s non-binding nature means execution risks remain. The fund’s success will depend on market conditions, final approvals, and alignment between the parties.
Private real estate funds are increasingly popular in Saudi Arabia. They help finance large projects while allowing investors to manage risks. If successfully launched, this fund will give investors access to one of Makkah’s most ambitious urban developments.
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