Binbar Investment has partnered with Joa Capital, with Rabeh as technical advisor, to launch the Marhoon Fund, Saudi Arabia’s first direct financing vehicle secured by lease and usufruct contracts. The fund, valued at SAR 500 million, introduces a new financing model designed to empower Saudi companies and stimulate private sector growth.
The initiative aligns with the goals of Saudi Vision 2030, promoting financial innovation, asset-backed lending, and sustainable diversification of funding sources.
Enabling Businesses Through Asset-Backed Financing
The Marhoon Fund allows Saudi companies to secure loans using operational lease or usufruct contracts as collateral. This structure unlocks liquidity for asset-heavy businesses while fostering trust between investors, developers, and tenants.
Key objectives of the fund include:
- Expanding access to innovative, Sharia’a-compliant financing options.
- Supporting small and medium enterprises (SMEs) through asset-backed loans.
- Strengthening transparency and reliability in real estate finance.
- Boosting the private sector’s role in national economic transformation.
Nasser Al-Majed, Chairman of Binbar Real Estate, said the initiative reflects Binbar’s mission to create value-driven real estate solutions tailored to the Kingdom’s rental market.
Majed Al-Zahrani, CEO and Partner at Binbar, added that the fund represents a transformative shift in how real estate assets are financed. “By leveraging usufruct contracts, we’re unlocking new ways to fund developments, increase investor confidence, and promote sustainable growth,” he said.
Strengthening Saudi Arabia’s Real Estate Ecosystem
Yousef AlYousefi, CEO and Managing Partner at Joa Capital, described the partnership as a strategic step that aligns with Joa Capital’s vision of advancing Saudi Arabia’s private sector through modern financial tools.
He noted that digital platforms are playing a critical role in improving liquidity and transparency across the real estate market. This aligns with broader national initiatives designed to enhance the business environment and attract investment.
Joa Capital, founded in 2020, focuses on private market investments across the MENA region, particularly in technology and private credit, providing businesses with non-dilutive funding and growth-focused financial solutions.
A Market Ready for Innovation and Growth
Saudi Arabia’s leasing market is expanding rapidly, supported by regulatory modernization from the General Real Estate Authority and the Ejar platform. Over 1.5 million lease agreements—commercial and residential—have been registered digitally, increasing transparency and investor confidence.
The recognition of unified lease contracts as legally enforceable instruments marks a turning point. It allows these agreements to serve as credible collateral for financing, enhancing the attractiveness of the real estate market to investors.
The Marhoon Fund leverages this strong regulatory foundation to create a secure financing avenue that boosts liquidity, supports company expansion, and strengthens economic resilience across sectors.