First Avenue for Real Estate Development Co. has signed a development agreement with Jadwa Al Shorfa Real Estate Fund to execute the mixed-use Capital Avenue – Al Rayyan project in Riyadh. The agreement outlines a 15% development fee based on SAR 185 million in estimated costs (excluding VAT), with a 30-month timeline starting after the contractor’s appointment. The project spans 38,950 square meters and includes commercial, residential, and office components. The strategic location at the intersection of Eastern Ring Road and Makkah–Khurais Road positions it as a key asset in Riyadh’s expanding real estate market. The company anticipates financial benefits from 2026, aligning with its strategy to invest in high-potential locations. This partnership underscores Saudi Arabia’s growing focus on mixed-use developments to diversify its economy under Vision 2030. For traders, the deal could boost First Avenue’s stock as it expands its portfolio, though the financial impact is not expected until 2026. The involvement of Nader Al-Amri, a board member and investor in Jadwa Al Shorfa, introduces a related-party dynamic that may require closer scrutiny from investors. The project’s approval and building permits indicate regulatory support, which is critical for long-term success. MENA investors should monitor construction progress and market demand in Riyadh’s Al Rayyan district. Future updates on material developments or delays could influence investor sentiment, particularly as the real estate sector remains a key driver of Saudi economic growth.
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