Saudi Arabia’s Binbar and Joa Launch SAR 500M Marhoon Fund to Revolutionise Real Estate Financing

Now this is quite the development in Saudi Arabia’s real estate financing space. Binbar Investment has just signed a deal with Joa Capital—both well‐known players in the investment and property markets—to roll out what they’re calling the *Marhoon Fund*. With Rabeh stepping in as technical advisor, the fund clocks in at a hefty SAR 500 million and, believe it or not, it’s the first of its kind in the Kingdom aimed at providing direct financing secured specifically by lease and usufruct contracts.

Essentially, this gives Saudi companies fresh access to credit, using their existing operational assets as collateral. The move ties neatly into Saudi Vision 2030’s bigger picture: helping the private sector grow, diversify its funding channels, and, well… stand on its own two feet without always leaning on traditional lending.

Nasser Al‑Majed, Chairman of Binbar Real Estate, said his group wants to create “differentiated products,” while Majed Al‑Zahrani, the company’s Partner and CEO, added that using usufruct‑based financing could be a turning point for the Kingdom’s real estate scene. From where I sit, that’s spot on—trust between developers, tenants, and investors often makes or breaks markets like these, and this approach seems to hit the right chord.

From Joa Capital’s side, CEO and Managing Partner Yousef AlYousefi shared his confidence in the strength of Saudi Arabia’s real estate ecosystem, noting how technology and digital platforms are making it easier for property owners to unlock liquidity. And he’s right: the landscape is shifting fast. Founded in 2020, Joa Capital isn’t just sticking to equity; it’s been offering non‑dilutive private credit tools to support growth‑stage companies, particularly across the MENA region.

At Arageek, we’ve often chatted with founders who complain that securing financing can be a bit of a faff—especially when tangible assets sit idle while balance sheets strain. This kind of fund could very well bridge that gap.

The timing also seems clever. Saudi Arabia’s leasing market is buzzing, thanks largely to the General Real Estate Authority and the *Ejar* platform. Over 1.5 million lease agreements—both commercial and residential—have already been logged, with many now digitised to ensure transparency and standardisation. Crucially, these unified contracts are legally enforceable, meaning they can serve as credible collateral. I reckon that’s quite a game‑changer; it takes leasing from paperwork slog to genuine financing leverage.

So, launching Marhoon right now feels like a strategic step rather than a gamble. With a strong legal and regulatory framework already in place, Saudi firms can finally tap into a safer, clearer path to financing—one that might help ease cash‑flow pinch points and accelerate expansion. And if it pans out as planned, we might soon see more such funds cropping up across the region… which would be, frankly, a good problem to have.

(And yes, I’m still chuffed to bits to see how finance innovation here keeps pushing the boundaries of what’s possible, even if getting the paperwork sorted is still definately no walk in the park.)

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