Saudi Arabia’s Alramz Real Estate has secured SAR500 million in Shariah-compliant credit facilities from Al Rajhi Bank to finance property acquisitions, development spending and general working-capital needs, the company disclosed on the Saudi Exchange.The facilities became effective on September 10, although the underlying agreement was dated August 3, Alramz said in its disclosure published on Sunday. The financing is split into a SAR450 million facility with a five-year tenor and a SAR50 million revolving facility running for three months.
Alramz said the larger facility is backed by real estate mortgages in favour of Al Rajhi Bank with coverage of 150 per cent. The security package also includes assignment of sales proceeds from financed projects to the bank, with an escrow account to be opened for each funded development.
Additional guarantees comprise an on-demand promissory note worth SAR531.183 million and Shariah-compliant takaful insurance on the mortgaged assets. The company said there were no related parties to the transaction.
The new package expands Alramz’s access to bank funding as it pursues a substantial pipeline of residential and mixed-use developments. It follows a separate Shariah-compliant financing arrangement with Alinma Bank that took effect on August 4, under which the developer obtained facilities totalling SAR300 million.
That earlier package consisted of SAR200 million for five years and a SAR100 million six-month revolving facility. Alramz said the Alinma financing was intended for land purchases, development costs, expansion across its property projects and working capital. The company pledged real estate mortgages covering 150 per cent of the first facility and investment fund units covering 200 per cent of the second, alongside promissory notes totalling SAR330 million.
The additional borrowing capacity comes as Alramz increases the scale of projects being structured through Shariah-compliant real estate investment funds. On July 30, the company signed an agreement with SNB Capital to establish a fund targeting more than SAR3.6 billion for a residential and commercial development in Riyadh’s Al Raed district.
Alramz said it owns all units in that fund, which covers more than 90,000 square metres and is expected to contain about 2,505 apartments together with commercial space. The associated development contract is valued at about SAR1.2 billion, with Alramz entitled to a 10 per cent development fee and a marketing fee of 2.5 per cent of total sales.
A month earlier, the company agreed with Oud Capital to establish another Shariah-compliant property fund with a target size exceeding SAR1 billion. That vehicle is intended to develop residential projects on land plots spanning 70,516 square metres and comprising more than 800 homes. The estimated development contract is worth about SAR391 million and is expected to run for roughly three years until sales are completed.
Alramz has also been developing the Ramz Al Raed residential project through a Shariah-compliant fund managed by SNB Capital. The fund, announced in April with a target size of SAR650 million, is designed to develop about 500 apartments on a 26,590-square-metre site in Riyadh’s Al Raed district.
The financing also comes against a sharp increase in Alramz’s operating scale. For the first half of 2026, the company reported revenue of SAR910.7 million, up 308.6 per cent from SAR222.9 million a year earlier. Net profit attributable to shareholders fell 24.1 per cent to SAR54.3 million from SAR71.5 million, reflecting lower fair-value gains, a higher zakat charge and a 51.2 per cent increase in finance costs. Second-quarter revenue reached SAR550.4 million, while quarterly net profit stood at SAR25.6 million.
Alramz attributed first-half growth mainly to off-plan sales of SAR139.7 million, unit sales of SAR72.5 million and SAR540.7 million from sales of projects under development. Shareholders’ equity stood at SAR1.84 billion at the end of June, more than double the comparable year-earlier level, according to its interim results as filed with the Saudi Exchange.
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