A new real estate fund worth SAR 1 billion has been established to construct purpose-built workforce communities across Saudi Arabia.

The initiative is a joint effort between real estate platform Mnzil, The Development Group (TDG) and Capital Partners. Development work on the project is scheduled to begin in the fourth quarter of 2026.

The new communities will offer a total capacity of up to 50,000 beds. Developments will be built in major urban centres across the Kingdom, including Riyadh, Jeddah, Dammam, Khobar, Makkah and Madinah.

The fund aims to raise the benchmark for workforce accommodation in the region. Rather than providing basic shelter, the developments will focus on improving the everyday living experience for residents.

Each community will include high-quality housing, recreational areas and green spaces. Projects will also be situated closer to employment hubs and everyday essential services.

The venture combines Capital Partners’ financial experience with TDG’s expertise in property development. Mnzil will provide technology and operational management to support the housing model.

Organisers stated that the initiative aims to create a sustainable operational model for workforce housing across the Kingdom. They noted that supporting the quality of life for workers is a crucial element in driving the ongoing economic growth of Saudi Arabia.