Binbar Investment, a specialist in real estate investment solutions, and Jawa Capital, a leader in private market investment management, have announced a strategic partnership to launch the “Marhoun” fund. With an investment size of SAR 500 million, Marhoun is the first direct financing fund in the Kingdom of Saudi Arabia to utilize lease and utility contracts as operational collateral.
A New Paradigm for Non-Dilutive Financing
The Marhoun fund, with Rabah serving as its technical advisor, aims to empower Saudi companies by providing access to innovative, non-dilutive financing solutions. This model is built upon a modern regulatory framework that recognizes unified lease contracts as enforceable executive bonds, making them viable assets for collateralization.
This new financial instrument allows businesses to secure operational funding against their existing lease agreements, unlocking liquidity and supporting growth and expansion plans without sacrificing equity.
Executive Commentary on the Strategic Partnership
Majed Al-Zahrani, Partner and CEO of Binbar Real Estate, commented on the fund’s potential impact, stating, “We believe that direct financing based on utility contracts will bring about a qualitative shift in real estate asset financing and enhance trust among investors, developers, and tenants. Our partnership with Jawa Capital aims to build real financial tools that support growth and sustainability in the Saudi real estate sector.”
Yousef Al-Yousefi, CEO and Managing Partner at Jawa Capital, added, “We are proud of this partnership, which aligns with Jawa Capital’s objectives and our belief in the capabilities of the promising Saudi real estate market, supported by technology platforms that enhance property owners’ access to liquidity and stimulate investment. We are pleased to collaborate with a strategic partner that shares our vision for developing innovative financial solutions to support private sector growth.”
Tapping Into A Digitized Rental Market
The launch of the Marhoun fund is timely, capitalizing on the rapid growth and regulatory evolution of Saudi Arabia’s rental market. Initiatives by the General Real Estate Authority and the Ejar platform have led to the documentation of over 1.5 million commercial and residential lease contracts, with an increasing reliance on unified digital contracts that bolster transparency.
With the legal recognition of these lease contracts as executive bonds, they have become powerful credit guarantees that can be mortgaged and financed. This makes the Marhoun fund a strategic move to provide secure and effective operational financing, aligning with the goals of Saudi Vision 2030 to diversify funding sources and enhance the private sector’s contribution to the national economy.
About Binbar Investment
Binbar Investment specializes in creating innovative and quality real estate products and investment solutions. The firm is focused on developing new financial tools to serve the growth and sustainability of the real estate sector in the Kingdom of Saudi Arabia.
About Jawa Capital
Jawa Capital is a leading investment management firm focused on private markets. The company is committed to developing innovative financial solutions that support the growth of the private sector and leverage the potential of promising markets, particularly within the Saudi Arabian economy.
Source: Jawlah
