Saudi Sukuk Capital completes first regulated real estate offering in 12 minutes

06/01/2026 02:47 AST

Sukuk Capital has completed the offering of the first fully regulated real estate investment subscription for Taraf Real Estate Development Co., for a residential real estate development project valued at SR84 million ($22.4 million) in Riyadh.

A total of SR36 million was offered as a real estate investment opportunity through the Sukuk Capital app under the name "Loria Villa Investment."

The offering was fully subscribed within 12 minutes of launch, reflecting strong demand for investment opportunities in the real estate sector and underscoring investor confidence in this type of innovative investment instrument, according to a statement.

Commenting on the development, Abdullah Al-Hammad, CEO of the Real Estate General Authority, said in a post on his X account: "Twelve minutes were enough to close the offering of the first fully regulated real estate investment subscription, a clear indicator of the level of confidence the Kingdom's real estate market has reached.

He added: "What we witnessed today, through the commendable efforts of the Sukuk Capital platform, reflects the evolution of real estate financing tools and strengthens investment in the development industry in a way that creates real value and accelerates the pace of real estate projects."

The achievement highlights the strength of the Saudi real estate market, supported by regulators and the establishment of regulatory frameworks by the Capital Market Authority and the Real Estate General Authority, as per the statement.

The release added that these measures enable the development of innovative financing and investment tools that open new horizons for growth in the Saudi market.

Regulated real estate contributions boost the growth of the property sector by enhancing transparency, structuring investment mechanisms, and broadening the investor base.

This, in turn, supports an increase in the supply of residential units and raises the rate of homeownership among citizens.

Sukuk Capital also announced its targets for 2026, which include launching 15 real estate investment subscriptions with a total value of SR1billion, which will be available to investors through the Sukuk Capital app and its electronic platform.

The company explained that the financial structure of the "Loria Villa Investment" is based on an off-plan sales model, which helps maximize capital efficiency and enhance investment returns for subscribers.

The expected return on investment stands at 35.4 percent over an investment period of 24 months from the date the offering was completed.

A total of 197 investors participated in the subscription, with qualified clients accounting for 72 percent of total coverage and individual investors making up the remaining 28 percent.

Taraf Real Estate Development Co. is considered one of the leading real estate developers in Riyadh, with a strong track record that includes the development of more than 600 residential units, comprising villas, residential floors, apartments, and office spaces.

The value of its ongoing projects exceeds SR700 million, while the value of completed and sold projects has surpassed SR500 million, reflecting the company's expertise and capacity to deliver high-quality developments.

The "Loria Villa" project is located on a 9,652-sq.-meter plot in the Al-Rimal district of Riyadh. The investment aims to acquire residential land, develop it into residential villas, and fully exit the project within the defined investment period.

Arab News