Riyadh – October 05, 2026 -- Mnzil, The Development Group (TDG) and Capital Partners have launched a real estate fund to invest SAR 1 billion in developing purpose-built workforce housing across Saudi Arabia, targeting up to 50,000 worker beds.
Partners split roles across operations, development and fund management
Mnzil will act as strategic partner and exclusive operator of the portfolio, TDG will lead site selection, design and property development, while Capital Partners will serve as fund manager under its Capital Market Authority license (25315-32).
Compounds will target six major employment hubs starting Q4 2026
Development is expected to begin in the fourth quarter of 2026, with sites selected in Riyadh, Jeddah, Dammam, Khobar, Makkah and Madinah to shorten commute times for workers. The compounds will feature furnished rooms, recreational and sports facilities, communal areas and on-site maintenance and administration services.
Mnzil already houses 30,000 workers for 250-plus corporate clients
Mnzil currently manages accommodation for more than 30,000 workers across over 30 Saudi cities, serving clients including Amazon, Noon, Nestlé, McDonald's and Americana. The company is backed by US-based Founders Fund, which made its first Saudi Arabia investment in Mnzil, and by COTU Ventures.
Fund structure targets contracted rental income through built-to-suit model
Capital Partners' Saud Al Rajhi, Vice President - Real Estate Investments, said the fund uses a built-to-suit model supported by long-term lease arrangements to develop institutional-grade assets with contracted rental income. TDG CEO Talal Raqaban said the partnership combines purpose-built design, professional operation and proximity to major employment centres into a scalable, long-term investment opportunity.
The initiative responds to rising demand for quality worker accommodation as Saudi Arabia's Vision 2030 diversification drives growth in construction, logistics, industry and tourism, sectors reliant on labour-intensive workforces.