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Osool & Bakheet Investment Co. has launched the Osool & Bakheet Ashad Al Hamra Hotel Development Fund, a SAR 713 million closed-ended private real estate fund targeting land acquisition and hotel development in Al Khobar. The fund combines equity and bank financing, aiming to capitalize on Saudi Arabia's growing tourism sector. The company expects the fund to generate financial benefits starting in 2026, contributing over 5% of its 2025 revenue through arrangement fees and recurring management fees over a five-year term with potential extensions.
This development signals Osool & Bakheet's strategic expansion into real estate, aligning with Saudi Arabia's Vision 2030 to diversify its economy. The luxury hotel project in Al Khobar, a key East Coast city, could benefit from increased domestic and international tourism. For investors, the fund's performance may influence the company's stock valuation and revenue streams, particularly in the real estate and hospitality sectors.
The fund's success depends on factors like construction timelines, tourism demand, and regional economic conditions. Saudi equity markets may react positively to progress reports, while Gulf investors should monitor the company's quarterly earnings and project updates. The broader real estate sector in Saudi Arabia could see increased activity if this venture proves profitable.
