Riyad Capital, one of Saudi Arabia’s dominant asset management powerhouses, has finalized an agreement to establish the Riyad Real Estate Development Fund – Dar Al Salam. Valued at approximately $400million (SAR 1.5billion), the fund is a collaborative venture with Her Highness Princess Munira bint Abdullah bin Faisal Al Saud and Naif AlRajhi Investment Company.
The move is more than just a typical real estate play; it’s a strategic bet on the institutionalization of Riyadh’s property market. The project involves a 32,000-square-meter land plot on Al-Takhassusi Road, designed to host a sophisticated mix of hospitality, office, residential, and retail assets.
The TOD Advantage: A 250-meter Sprint to the Metro
A standout feature of the development is its classification as a Transit-Oriented Development (TOD). Located just 250 meters from the Al-Takhassusi Metro Station, the project aims to capitalize on Riyadh’s massive public transport infrastructure projects to provide an integrated, sustainable destination that prioritizes mobility and high-density living.
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Fund Value: c. $400million (SAR 1.5billion).
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Footprint: 32,000 square meters.
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Classification: Transit-Oriented Development (TOD).
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Alignment: Saudi Vision 2030.
Strategic Institutional Backing
For Riyad Capital, this marks its fourth TOD venture, reinforcing a strategy focused on high-quality destinations in competitive urban hubs.
Abdullah Abdulrahman Alshwer, PhD, CFA, CEO of Riyad Capital, highlighted that the partnership combines development expertise with significant investment management capabilities. “This fund is part of our strategy to offer carefully structured investment opportunities built on strong fundamentals, enhancing value for investors,” Alshwer noted.
Naif Saleh AlRajhi, chairman and CEO of Naif AlRajhi Investment Company, echoed the sentiment, noting the project is a valuable addition to their portfolio that specifically addresses the evolving, quality-focused expectations of the Riyadh market.
A Market Giant at a Glance
Riyad Capital is no stranger to large-scale deployments. As a pioneer in the sector, it launched Saudi Arabia’s first listed REIT back in 2016. Its current institutional standing is formidable:
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Assets Under Management (AUM): c. $26billion (as of December 2025).
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Assets Under Custody (AUC): Over $279billion.
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Global Footprint: Real estate portfolio spans three continents with a value exceeding $6billion.
By launching the Dar Al Salam fund, the firm reaffirms its commitment to the urban development goals of Saudi Vision 2030, blending long-term sustainable returns with projects that demonstrably improve the city’s quality of life.
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