Saudi Arabia Launches $1 Billion Real Estate Fund in Egypt

 Saudi Arabia Launches $1 Billion Real Estate Fund in Egypt

Saudi Arabia's SUMOU Holding Plans to Launch $1 Billion Real Estate Fund in Egypt

Abdulrahman bin Ayed Al-Qahtani, Chairman of the Board of Directors of the Saudi Sumou Holding Group, said that his company is looking to launch a $1 billion real estate fund in Egypt by the end of the fourth quarter of this year or early 2026.

On the sidelines of the signing of a partnership between his subsidiary, Adir International, and the Egyptian company, Medar Investment and Urban Development, to implement a commercial investment project east of Cairo, Al-Qahtani added that Adir's management has been in discussions with the Egyptian Stock Exchange for about two years to amend some legislation that would allow foreign investors and local developers to establish real estate funds.

"We aim to be the first to establish real estate funds in Egypt, and we feel the highest level of government support to achieve this goal in Egypt," Al-Qahtani said. Sumou Holding is one of the largest developers contributing to real estate funds in Saudi Arabia, with 13-14 real estate funds with a total value exceeding 250 billion Saudi riyals, according to Al-Qahtani.

"We look forward to transferring the company's experience in establishing real estate funds in Saudi Arabia over the past ten years to the Egyptian market. We will prepare a detailed memorandum outlining our vision for the nature of the funds' operations and will present it to the Egyptian Stock Exchange in the coming period, in preparation for the establishment of the first real estate fund," according to Al-Qahtani.

The chairman of Sumou Holding indicated that there are a large number of Saudi investors interested in investing in the targeted real estate fund, but they are just waiting for the launch. Al-Qahtani expected that Saudi investors would represent between 30 and 40% of the fund's potential subscribers, compared to 60% for Egyptians and foreigners.

He stated that the fund would be open to various opportunities available in the Egyptian market, especially new and distinctive projects, and he did not rule out the possibility of the fund investing in projects and buildings in downtown Cairo. Regarding the company's expansion plan within Egypt, Al-Qahtani said the company is currently studying a real estate investment opportunity in the North Coast region, near Ras El Hekma, covering an area of 300 acres.