Riyadh – Mubasher: Umm Al Qura for Development and Construction Company, listed on the Saudi Exchange as MASAR, has announced a formal extension to its non-binding memorandum of understanding (MoU) with BIM Capital and Ajbal Real Estate Development.
The extension is intended to provide additional time for the parties to complete the necessary regulatory and administrative procedures required to launch a new private real estate fund.
The announcement, released on the Saudi Tadawul, serves as a progress update to the initial disclosure made on 31 December 2025.
At that time, Umm Al Qura for Development entered into a preliminary agreement with BIM Capital (Business Investment Mine) and Ajbal Real Estate Development to explore and execute the creation of a specialized real estate investment vehicle.
This tripartite collaboration is designed to leverage the respective expertise of the master developer, the financial investment manager, and the real estate development firm.
According to the latest regulatory filing, the memorandum of understanding has been extended until 30 September 2026. This revised timeline ensures that all participating entities have sufficient opportunity to finalize the legal and structural frameworks of the private fund.
The disclosure notes that the agreement could conclude earlier than the specified date should the fund be officially established and registered before the end of the third quarter (Q3) of 2026.
The primary driver behind this extension is the requirement to fulfil all regulatory mandates set forth by the relevant Saudi Arabian authorities.
Establishing private real estate funds involves a rigorous process of compliance, including the finalization of fund terms and conditions, securing necessary approvals from the Capital Market Authority (CMA), and ensuring that the governance structure aligns with the Kingdom’s financial regulations.
Umm Al Qura for Development confirmed that there are no additional costs associated with this extension at the current stage. The company also clarified that the extension does not represent a change in the financial terms previously discussed, as the memorandum remains non-binding.
The strategic intent of the fund remains focused on supporting development projects that align with the company’s broader objectives within the real estate sector.
Regarding the financial implications of this development, the company stated that there is no immediate financial impact on its current balance sheet or income statement.
Umm Al Qura for Development has committed to maintaining transparency with its shareholders and the broader investment community by pledging to disclose any material developments or future financial impacts as they arise.
By allowing for a longer preparatory period, the entities aim to ensure that the eventual fund is established on a robust operational and legal foundation, capable of meeting its investment objectives within the Saudi real estate market. This move is consistent with the company's long-term strategy of forming strategic partnerships to drive large-scale urban development and investment opportunities.
The listed company recently finalized the sale agreements for two land plots within MASAR project’s first zone at a total value of SAR 462.11 million.
