Alramz bets on Jeddah housing demand

Alramz Real Estate has moved to deepen its presence in Saudi Arabia’s housing market after signing an agreement with Oud Capital to establish a Shariah-compliant real estate investment fund worth about SAR650 million to develop a 900-unit residential community in Jeddah, in a deal that underlines how listed developers are using capital-market structures to expand amid sustained demand for urban housing. The project, branded Al Ramz Front, will rise in Al Firdous district in north Jeddah and is expected to support the company’s earnings between 2026 and 2029.

The Saudi Exchange filing sets out a layered structure for the transaction. Alramz said it would join the fund as landowner with an investment of about SAR81.6 million, while the project itself will be built on a portfolio of land plots with a total area of 47,794 square metres and a stated land value of SAR215.1 million. The company will also act as developer and exclusive marketer, with the development contract valued at about SAR268.8 million. Under that arrangement, it expects to earn development fees equal to 10% of the development value, or around SAR26.8 million, as well as a marketing fee of 2.5% of total project sales.

That structure matters because it shows Alramz is seeking returns from several layers of the same scheme: direct participation in the fund, value embedded in contributed land, development fees and sales commissions. For investors, that can offer multiple revenue channels, but it also concentrates execution risk inside one project and makes the timing of cash generation dependent on construction progress and end-user sales. Alramz said the homes are intended for sale to end beneficiaries rather than long-term rental holding, keeping the project aligned with the Kingdom’s push towards owner-occupation and primary housing supply.

The wider policy backdrop is favourable. Saudi Arabia’s Ministry of Municipalities and Housing says the government is aiming to lift homeownership to 70% by 2030, while the official Vision 2030 Housing Program says the Kingdom is on course towards that target. The ministry has also said more than 54,000 families benefited from housing support programmes in the first half of 2025, indicating that state-backed demand support remains active. For developers such as Alramz, that policy direction continues to create a supportive environment for mid-market and master-planned housing projects, especially in major cities where household formation and urban expansion are reshaping demand.

Market data suggests Jeddah has been one of the more resilient urban housing markets in the Kingdom. Knight Frank said in August 2025 that Jeddah’s residential market had continued to grow in the first half of that year, with transaction volumes rising 19% over the previous 12 months and the total value of deals increasing 28% to SAR17.3 billion. The consultancy has also highlighted a broader shift in the Saudi market towards housing affordability and better-designed, higher-density residential formats that suit middle-income households more closely than older low-density models. That gives added context to Alramz’s choice of an integrated community format rather than a smaller standalone block project.

The Jeddah fund is not an isolated move. Alramz has been expanding across multiple cities and project types. In February, market reports said the company signed agreements tied to development activity in Riyadh and Makkah, including residential plots within ROSHN’s Sedra project and two residential towers in Makkah. Days before announcing the Jeddah fund, the company also reported annual results showing 2025 net profit of SAR280.9 million, up 77.45% from SAR158.4 million a year earlier. That profit growth gives Alramz a stronger platform from which to pursue larger and more capital-intensive schemes, though the pace of expansion will inevitably invite closer scrutiny over leverage, delivery and sales absorption.

One point likely to draw market attention is governance. Alramz disclosed that Oud Capital is a related party because the real estate company holds a 25% stake in it, with Abdulmalik Rasheed Alrasheed serving on the boards of both companies. Such arrangements are not unusual in property finance, particularly where specialist fund management is needed, but they can raise questions over pricing discipline, transparency and the independence of decision-making. The company’s public disclosure of the relationship is therefore significant, even if the commercial success of the project will ultimately be judged by build quality, delivery timetables and the speed of unit sales.