Saudi Railway sets up new SAR6 billion real estate fund in Makkah with Riyad Capital

Project will be developed on 90,000-square-meter land plot located in Al-Rusifah district

Last updated: October 21, 2025 | 13:22

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Pilgrims on their way to Makkah walk past the Haramain High-Speed Railway train in the holy city of Medina, Saudi Arabia, Thursday, Aug. 8, 2019.

AP Photo/Amr Nabil

Dubai: Riyad Capital has been appointed by the Saudi Railway Company (SAR) to establish a real estate investment fund worth up to SAR6 billion to develop a large-scale, mixed-use project in Makkah.

The project will be built on a 90,000-square-meter site in Al-Rusifah, next to the Haramain High-Speed Railway Station, one of the busiest transport hubs in the holy city.

Also Read: Saudi Arabia to build $7b high-speed rail linking Red Sea to Gulf, Riyadh to Jeddah under 4 hours

New urban spot in Makkah

The development will follow the Transit Oriented Development (TOD) model — an international approach to creating integrated urban communities around transport nodes.

Plans call for a blend of hotels, commercial spaces, and residential buildings, designed to serve both residents and visitors while boosting investment activity in one of Makkah’s key growth zones.

Riyad Capital described the project as a strategic milestone that strengthens its presence in real estate development and supports national efforts to modernize urban infrastructure.

“Our collaboration with SAR embodies a shared vision to transform the project site into a modern urban destination aligned with Makkah’s development aspirations, while providing promising investment opportunities,” said Dr. Abdullah Alshwer, CEO of Riyad Capital.

SAR’s involvement ensures that the development is integrated with the Kingdom’s expanding railway network, which continues to play a central role in connecting major cities and facilitating religious tourism.

Also Read: Saudi Arabia opens bidding for Qiddiya High-Speed Rail project

Growing real estate footprint

Riyad Capital is among Saudi Arabia’s largest investment managers and a major player in the Kingdom’s real estate sector. The firm manages over $25.8 billion in assets and more than US$205 billion in assets under custody.

It launched Riyad REIT, the first listed real estate investment trust in Saudi Arabia, in 2016, and its property portfolio now spans three continents with a combined value of over US$6 billion.

Recognized among the top five asset managers in the Middle East by Forbes in 2024 and 2025, Riyad Capital continues to expand its role as a driver of large-scale, sustainable investment in Saudi Arabia’s evolving urban landscape.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.