Mnzil, Saudi Arabia’s first and leading tech-enabled workforce housing platform, The Development Group (TDG) and Capital Partners have launched a real estate fund to invest SAR1 billion ($267 million) in developing purpose-built compounds housing up to 50,000 workers across the Kingdom.
Through the fund, Mnzil will serve 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.
The fund comes as Saudi Arabia’s economic diversification under Vision 2030 drives growth in construction, logistics, industry, tourism and other labour-intensive sectors, increasing demand for quality accommodation and services that improve workers’ everyday lives across the Kingdom.
By linking purpose-built accommodation directly to employer demand, the partnership aims to improve both the availability and quality of workforce housing. It will enable Mnzil to move beyond managing third-party supply and help shape the development of dedicated compounds designed around the everyday needs of workers across the Kingdom.
Majeed Albabtain, Chief Executive Officer of Mnzil, said: “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.”
As the Kingdom’s leading integrated workforce services provider, Mnzil brings together accommodation, transportation, catering and related services to help employers manage workforce needs and improve workers’ living experience. The company currently houses more than 30,000 workers for over 250 corporate clients across more than 30 Saudi cities. Its customers include Amazon, Noon, Nestlé, McDonald’s, and Americana. Mnzil is backed by US-based Founders Fund and was the firm’s first investment in Saudi Arabia.
Development is expected to begin in Q4 2026. The fund will target major economic and employment centres, including Riyadh, Jeddah, Dammam, Khobar, Makkah and Madinah. Locations will be selected to bring workers closer to their workplaces and help reduce commute times.
The compounds will be designed around workers’ everyday needs and Mnzil’s operating requirements, with furnished rooms, recreational and sports facilities, communal areas and open spaces. On-site maintenance, administration and related services will support day-to-day living.
Talal Raqaban, CEO of The Development Group, said: “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.”
The fund’s coordinated approach to development, ownership and management is designed to support consistent housing standards and long-term investment in the sector.
Saud Al Rajhi, Vice President - Real Estate Investments at Capital Partners, said: “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.”
Through the fund, the partners aim to make better living conditions an integral part of Saudi Arabia’s growth, giving the workers supporting the Kingdom’s development better places to rest, connect and feel at home. - TradeArabia News Service
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