Mnzil, The Development Group and Capital Partners have launched a SAR 1 billion real estate fund to develop dedicated worker compounds across Saudi Arabia, with development set to begin in Q4 2026.
Under the structure, Mnzil will serve as strategic partner and exclusive operator of the portfolio, TDG will handle site selection, design and construction, and Capital Partners will act as fund manager. The fund will target Riyadh, Jeddah, Dammam, Khobar, Makkah and Madinah, with locations chosen to reduce commute distances between workers and their employers. Compounds will include furnished rooms, recreational and sports facilities, communal areas and on-site services.
The partners say the initiative is a response to rising demand from labour-intensive sectors expanding under Vision 2030, including construction, logistics, tourism and industry. By owning and developing its own supply, Mnzil moves beyond its current model of managing third-party accommodation.
Mnzil currently houses more than 30,000 workers for over 250 corporate clients across more than 30 Saudi cities. Its client base includes Amazon, Noon, Nestlé, McDonald’s and Americana. The company is backed by US-based Founders Fund, which made Mnzil its first Saudi investment.
“For too long, the living conditions of the workers helping build and run our economy have not received the attention they deserve. Mnzil was founded to help change that. Improving workers’ lives is a collective effort, and we hope this partnership encourages greater attention and commitment across the Kingdom,” Majeed Albabtain, Chief Executive Officer of Mnzil said in a statement.
“Workforce accommodation is essential infrastructure for the Kingdom’s continued economic growth. Through this partnership with Mnzil and Capital Partners, TDG brings its development and delivery capability to an institutional-grade housing platform, combining purpose-built design, professional operation and proximity to major employment centres. We see this as a scalable, long-term investment opportunity that aligns with the objectives of Vision 2030 and market needs,” Talal Raqaban, CEO of The Development Group added.
“The fund represents a specialised real estate investment strategy focused on the development of purpose-built workforce housing campuses, addressing an underserved segment of the Saudi real estate market. Through a built-to-suit model supported by long-term lease arrangements, the fund seeks to develop institutional-grade assets with contracted rental income and enhanced visibility on future cash flows. We believe this strategy provides a strong foundation for establishing workforce housing as an institutional real estate asset class in the Kingdom,” Saud Al Rajhi, Vice President – Real Estate Investments at Capital Partners further explained.
