Riyad Capital has announced that it has received an appointment letter from the Saudi Railway Company (SAR) to establish a real estate investment fund aimed at developing a mixed-use project in Makkah valued at up to SAR 6 billion. The project will be based on the Transit Oriented Development (TOD) model, a global urban design concept that promotes integrated communities centred around public transport hubs.

The development will take place on a 90,000-square-metre site located in the Al-Rusifah district, adjacent to the Haramain High-Speed Railway Station in Makkah. The mixed-use scheme is expected to include hotels, commercial centres, and residential facilities, positioning the area as a major investment and development destination within the holy city.

According to Riyad Capital, the partnership aligns with the company’s ongoing commitment to supporting large-scale urban and infrastructure projects in Saudi Arabia’s holy cities. The initiative also contributes to the broader objectives of Saudi Vision 2030, which seeks to diversify the national economy and stimulate private sector participation in strategic real estate developments.

Abdullah Alshwer, PhD, CFA, CEO of Riyad Capital, said: “This project marks a strategic milestone in Riyad Capital’s efforts to strengthen its presence in the real estate development sector, particularly in cities of religious and economic significance. Our collaboration with SAR embodies a shared vision to transform the project site into a modern urban destination aligned with Makkah’s development aspirations, while providing promising investment opportunities.”

The collaboration between Riyad Capital and SAR underscores the growing trend of integrating transportation and real estate development across Saudi Arabia. The TOD model, already popular in major global cities, aims to reduce reliance on cars, increase accessibility, and encourage sustainable, high-density communities.

Industry analysts suggest that the Makkah project could serve as a blueprint for future TOD initiatives across the Kingdom, particularly in regions connected to the country’s expanding rail infrastructure. Once complete, the Al-Rusifah development is expected to enhance Makkah’s urban landscape and support the city’s growing influx of visitors and residents.