Saudi Bank and Developer Start $1.2 Billion Fund For Holy Cities
The skyline of Mecca, Saudi Arabia.
Photographer: Abdel Ghani Bashir/AFP/Getty Images
Arabian Dyar, a Saudi developer building thousands of properties across the kingdom, and Al Rajhi Capital have agreed to form a 4.5 billion riyals ($1.2 billion) real estate fund to develop new real estate projects in the holy cities of Mecca and Madinah.
Their Haramain Projects Fund will specialize in high-quality real estate developments in areas near the holy mosques in the two cities. The first phase will start with 4.5 billion riyals but the venture could eventually fund as much as 20 billion riyals in phases amid strong demand from foreign investors, according to Arabian Dyar.