Saudi Arabia’s Asas Makeen Real Estate Development and Investment Co. has renewed SAR350 million in Shariah-compliant credit facilities with Al Rajhi Bank, strengthening its funding base for land purchases, development work and residential construction.The Tadawul-listed developer said the renewed facilities would support its financing capacity across land acquisition, project development and the construction of housing schemes. Part of the funding will also be used for selected projects and for issuing a financial guarantee in favour of the National Housing Company under one of the facilities.
The agreement carries different maturity profiles depending on the facility type, with tenors ranging from six months to 120 months. The financing is backed by a promissory note and mortgages over real estate title deeds, including properties financed under the arrangement.
The renewal gives Asas Makeen greater balance-sheet flexibility at a time when developers are competing for land, construction capacity and structured bank funding in Saudi Arabia’s expanding housing market. The company has been positioning itself as a residential developer focused on Riyadh and other growth corridors, where demand for modern housing remains tied to demographic growth, urban expansion and state-led home-ownership programmes.
Asas Makeen reported 2024 net profit of SAR108 million, assets of SAR625 million and a net profit margin of 25 per cent, indicating a relatively strong earnings base for a developer operating in a capital-intensive sector. Access to revolving and longer-tenor facilities is significant for such companies because land banking, approvals, construction and sales collections often move on different timelines.
The renewed Al Rajhi facility also follows Asas Makeen’s SAR200 million Shariah-compliant credit facility renewal with Bank AlJazira earlier this year. That one-year renewable financing was backed by guarantees, promissory notes and mortgages over real estate deeds, including financed assets. Together, the two arrangements underline the company’s use of bank funding to support growth while securing facilities against property collateral.
The transaction comes against a broader shift in the property market, where bank-backed developers are seeking to align project pipelines with the Housing Programme and the National Housing Company’s drive to expand supply. The Vision 2030 framework targets a 70 per cent home-ownership rate among Saudi families by 2030, and the 2025 Vision 2030 annual report put home ownership at 66.24 per cent, above the interim target of 65 per cent.
The National Housing Company has emerged as a central player in the sector, working with private developers to deliver integrated communities and accelerate supply. Financial guarantees issued in its favour can be part of contractual or performance requirements linked to project delivery, allowing developers to participate in housing schemes while banks provide credit support.
Al Rajhi Bank remains one of the most influential lenders in the kingdom’s Islamic finance market. Headquartered in Riyadh and listed on Tadawul under ticker 1120, the bank had assets of SAR974 billion at the end of 2024, paid-up capital of SAR40 billion and more than 23,000 employees. Its scale gives it a central role in corporate lending, mortgage finance and Shariah-compliant project funding.
Real estate developers have relied heavily on Islamic financing structures because they match the kingdom’s banking framework and investor preferences. Facilities for developers commonly include murabaha-style working capital lines, project finance arrangements, guarantees and mortgage-backed credit, with security packages designed to protect lenders against delays in land development or off-plan sales.
For Asas Makeen, the SAR350 million renewal is not a new equity injection but a refinancing and capacity-building move that preserves access to credit. Its importance lies in the continuity of bank support, the long potential tenor on parts of the facility and the company’s ability to allocate funding across land, construction and project commitments.
The deal also reflects a more disciplined funding environment. Higher construction costs, land-price pressure in major cities and the need for timely delivery have made liquidity planning more important for developers. Banks, in turn, have been requiring clear collateral, defined project use and repayment visibility before extending larger facilities.
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