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      Saudi fund sets sights on housing for 50,000 workers

      A trio of Saudi companies has set up a SAR1 billion ($267 million) real estate fund to develop purpose-built compounds for workers across the kingdom.

      The demand for workers comes as the number of construction contracts awarded in Saudi Arabia surged 82 percent year on year in the first six months of 2026, despite the Iran war, according to Scavo, the project-tracking platform run by the Saudi Contractors Authority.

      Mnzil, a tech-enabled workforce housing platform; the Development Group, a real estate developer; and Capital Partners, a sharia-compliant asset manager, will invest in the fund, which will create housing for up to 50,000 workers, the companies said in a joint statement.

      The fund’s first project is expected to launch in the fourth quarter of 2026 and will target major economic and employment centres, including Riyadh, Jeddah, Dammam, Khobar, Mecca and Medina.

      The partnership aims to improve both the availability and quality of workforce housing in the kingdom, driven by increasing demand for high-quality accommodation and services for workers.

      Mnzil houses more than 30,000 workers for over 250 corporate clients across more than 30 Saudi cities.

      Building contractor awards almost doubled to $32 billion in the first half of 2026, up from $17 billion a year earlier, the Scavo figures show.

      Earlier this month, the Saudi Ministry of Finance forecast real GDP growth to reach 12.8 percent in 2027, driven by increased oil activity. However, it expected economic growth to fall to 3.6 percent this year.

      In a pre-budget statement, the ministry said the government expects spending to reach SAR1.47 trillion in 2028 and SAR1.55 trillion in 2029. Revenue is projected at SAR1.3 trillion and SAR1.35 trillion, respectively.

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      Source: AGBI
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