Al Ramz Real Estate Company has agreed to buy out the rest of a Riyadh property fund, lifting its stake in the vehicle that owns the Qurtuba 2 development from 23 percent to full ownership in a deal worth SAR 133 million ($35.5 million). The Saudi-listed developer signed the agreements on May 21, taking sole control of a mixed-use site on the capital’s Sports Boulevard corridor.
The purchase price is the smaller half of the story. By moving from passive unit-holder to sole owner, Al Ramz also picks up the contracts to develop, market, sell, operate and manage a project planned for roughly 2,050 homes and commercial units, capturing a fee stack it previously shared.
Al Ramz Lifts Its Qurtuba 2 Stake From 23% to Full Control
The seller is the Al Ahli Aleen Enbar Real Estate Fund, a private real estate investment fund whose core asset is the Qurtuba 2 site. Al Ramz already held 23 percent of the fund’s units, an investment it values at about SAR 40 million. The new agreements cover the remaining 77 percent, which is what the new payment buys.
Those two figures line up. A SAR 40 million stake for under a quarter of the fund, set against the price now being paid for the balance, implies a full fund value near SAR 173 million. Al Ramz, in effect, is buying out its partners at the valuation its own holding already carried.
The company will fund the deal from internal resources and available credit facilities, and the transaction still depends on regulatory and contractual procedures plus a payment timetable agreed between the parties. Here is the shape of it.
- SAR 133 million ($35.5 million) buys the remaining 77 percent of the fund.
- 23% to 100% is the jump in Al Ramz’s ownership once the deal closes.
- About SAR 173 million is the implied full value of the fund.
- 2026 to 2031 is the window over which Al Ramz expects an earnings benefit.
From Fund Investor to Full-Stack Operator
Owning units in a fund and owning the company that runs the project are different businesses. As a minority unit-holder, Al Ramz collected its share of whatever the fund returned. As sole owner and operator, it books revenue at every stage a building passes through, from the first design contract to the service charge a resident pays years after moving in.
The filing spells out the layers Al Ramz will now control directly. Alongside the fund units, the company said it will secure the contracts tied to the project’s full life cycle:
- Development of the site and its buildings
- Marketing of the residential and commercial space
- Sales of the completed units
- Operations once the project is running
- Facilities management over the long term
The value of those contracts and the related fees has not been disclosed; Al Ramz said it will publish them later, in line with regulatory requirements. That omission matters, because the fee income is where the margin upgrade sits. Capturing the full fee chain on a single development turns a 1,800-home project into a stream of payments that runs from groundbreaking to handover and well beyond.
It is also a template. Al Ramz has built more than 40 projects and delivered over 8,000 units since it started in Riyadh, and full ownership lets it keep every layer of that work in-house rather than sharing it with co-investors.
The 1,800-Unit Plan on the Sports Boulevard Corridor
The Qurtuba 2 site runs to about 130,386 square metres in Riyadh’s Qurtuba district, along Prince Mohammed bin Salman Road. The plan calls for roughly 1,800 residential units and around 250 commercial and office units, with hospitality components folded in. That mix is what lets Al Ramz sell homes, lease shops and run hotels off the same plot.
The address is the selling point. Prince Mohammed bin Salman Road is the spine of the Riyadh Sports Boulevard project under Vision 2030, a 135-kilometre green corridor that the government has bundled with King Salman Park, Riyadh Art and Green Riyadh at a combined cost of around $23 billion. The first phase, some 83 kilometres of paths and five destinations, opened in February 2025, with the remaining stretches due between 2027 and 2029.
For a developer, the 135-kilometre linear park plan does two things. It hard-codes parks, cycling tracks and sports venues next to the housing, the kind of amenity Riyadh buyers increasingly expect, and it limits how much competing land sits on the route. Al Ramz describes the area as one of strong demand and tight supply, and rental yields in the Qurtuba district have lately run in the 7 to 10 percent range for well-placed apartments.
A Buying Spree Months After a Soft Tadawul Debut
The timing is striking. Al Ramz only joined the public market in December 2025, and the listing did not go smoothly.
The December Listing
The company sold 30 percent of its share capital, about 12.86 million shares, in an initial public offering (IPO, a first sale of stock to the public) priced at SAR 70 per share, the top of its range. That valued Al Ramz at SAR 3 billion and raised roughly SAR 900 million ($240 million). The shares then opened down 6 percent on their Saudi Exchange (Tadawul) debut and extended the loss, in what was a difficult stretch for new listings in the kingdom.
The Acquisition Pipeline
The soft start has not slowed the buying. In the months around the listing, Al Ramz has lined up land and project deals across Riyadh and beyond, including a SAR 382.3 million land purchase earmarked for several towers. The Qurtuba 2 buyout is the latest.
| Move | Value | Location and focus |
|---|---|---|
| Qurtuba 2 fund buyout | SAR 133 million | Qurtuba district, Riyadh; 2,050 units |
| Al Malqa land plot | SAR 94.6 million | Al Malqa, Riyadh; 135 homes |
| Multi-tower land | SAR 382.3 million | Riyadh; several towers |
| AlAhli Capital joint fund | SAR 3.5 billion | Land in northeast Riyadh |
| Makkah residential towers | Not disclosed | Makkah; two towers |
Read together, the table shows a developer leaning into Riyadh land at the same time its first set of public investors is sitting on a loss. Each deal, the company says, is funded from internal cash and credit rather than fresh equity.
The Cash-Flow Question Investors Are Flagging
Strip out the headline growth and a wrinkle shows up in the accounts. Al Ramz reported a 2025 net profit of about SAR 281 million, up sharply on the SAR 158 million it earned in 2024. Yet over the same year it ran a negative free cash flow of SAR 760 million, meaning far more cash went out the door than the profit line suggests.
That gap has drawn comment. Published earnings-quality analysis has flagged the company’s high accrual ratio, a sign that reported profit is running ahead of the cash actually coming in. For a developer that books revenue as projects progress, a cash drain during a heavy buying phase is not unusual; it does, though, raise the stakes on deals funded with credit, as Al Ramz has done before with its SAR 94.6 million Al Malqa land purchase.
That is the tension inside the move. Full ownership of a prime corridor site, plus the fee income that comes with running it, is a genuine upgrade to what Al Ramz can earn. The cost is more capital committed and more credit drawn while the company waits for a 2,050-unit project to deliver. If demand on the Sports Boulevard holds and the fee chain converts to cash, the 2026 to 2031 payoff lands as planned; if absorption is slow, the bill for buying out the fund arrives well before the rent does.
Frequently Asked Questions
How much is Al Ramz paying for the Qurtuba 2 fund?
It is buying the remaining 77 percent of the Al Ahli Aleen Enbar Real Estate Fund. Combined with its existing stake, valued near SAR 40 million, the agreements value the whole fund at roughly SAR 173 million and hand Al Ramz full ownership.
What is the Qurtuba 2 project?
A planned mixed-use development of about 130,386 square metres in Riyadh’s Qurtuba district, along Prince Mohammed bin Salman Road. It is set to include roughly 1,800 residential units, around 250 commercial and office units, and hospitality components.
Where is Al Ramz Real Estate listed?
On the main market of the Saudi Exchange (Tadawul), under the ticker 4327. It listed in December 2025 at SAR 70 per share, giving it a market value of about SAR 3 billion at the time.
How is Al Ramz financing the acquisition?
Through internal resources and available credit facilities rather than a new share sale. The transaction still depends on regulatory and contractual procedures and a payment schedule agreed between the parties.
When will the deal affect Al Ramz’s earnings?
The company expects the acquisition to contribute positively to its financial performance over the period from 2026 to 2031.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Real estate and listed equities carry risk, including loss of capital. Readers should consult a qualified financial professional before making investment decisions. Figures are accurate as of publication on June 1, 2026.
