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new Saudi real estate fund has been launched in Medina with a total investment of SAR1.04 billion ($280 million). The development, called Al Duha, will be built on a 33,230sq m plot along King Abdulaziz Road within the Knowledge Economic City Masterplan. It will feature 576 residential apartments, 150 hotel keys, and around 20,000 sq m of leasable office and retail space.

    The fund is a collaboration between the Knowledge Economic City Company (KEC), Sidra Capital, and Ravel Properties. KEC will contribute the land as an in-kind investment and be a majority investor. Sidra Capital has been appointed manager of the fund, while Raseel Properties will act as project developer.

    Saudi Arabia's private investment funds saw a significant increase in assets during Q3 2024, with real estate funds dominating at SAR208 billion (around 40% of total assets). The number of private investment funds rose to 1,154 in Q3, up from 1,085 in Q2. Total real estate transactions across all asset classes increased by 38% to over 106,700 deals during the first half of the year.

    In Medina, Knight Frank is tracking 17,200 homes due for delivery by the end of 2026, which will take the city's total housing stock to 367,030 units.