Saudi Fund to Develop Worker Housing for 50,000

A trio of Saudi companies has established an SAR1 billion ($267 million) real estate fund aimed at developing purpose-built compounds for workers throughout Saudi Arabia. This initiative comes in response to a significant increase in construction contracts, which surged 82 percent year on year in the first half of 2026, as reported by Scavo, a project-tracking platform managed by the Saudi Contractors Authority. The companies involved in this fund are Mnzil, a tech-enabled workforce housing platform; the Development Group, a real estate developer; and Capital Partners, a sharia-compliant asset manager. Together, they plan to create housing for up to 50,000 workers, according to a joint statement. The fund's first project is anticipated to launch in the fourth quarter of 2026, targeting major economic and employment centers such as Riyadh, Jeddah, Dammam, Khobar, Mecca, and Medina. This partnership aims to enhance the availability and quality of workforce housing, driven by a growing demand for high-quality accommodation and services for workers. Currently, Mnzil accommodates more than 30,000 workers for over 250 corporate clients across more than 30 Saudi cities. The construction sector has seen a substantial increase in contractor awards, nearly doubling to $32 billion in the first half of 2026 from $17 billion the previous year, according to Scavo figures.