- Marhoon Fund launches with SAR 500 million as Saudi Arabia’s first direct financing fund based on collateralized lease and utility contracts instead of physical assets.
- The fund is a joint initiative by Binbar Investment and JOA Capital, with Rabeh handling the technical operations, offering innovative and flexible financing solutions for companies.
Marhoon transforms lease contracts into financial assets, enabling businesses to access liquidity without losing ownership while supporting Vision 2030 goals of financing diversification and private sector empowerment.
Binbar Investment and JOA Capital have announced the launch of a new financing fund named Marhoon, with an investment size of SAR 500 million.
This fund is the first of its kind in Saudi Arabia, dedicated to financing companies through collateralized lease and utility contracts, offering the private sector a new path to asset-backed financing based on operational revenues rather than physical properties.
The initiative stems from a strategic partnership between Binbar Investment, a specialist in real estate investment solutions, and JOA Capital, a leader in private market investment management, along with Rabeh, which manages the fund’s technical infrastructure.
Turning Lease Contracts into Financial Assets
The fund operates on a simple yet powerful principle: instead of pledging tangible assets like buildings or land, companies can use verified income-generating contracts—such as lease or utility agreements—as collateral to access liquidity.
This allows companies to retain ownership of their assets while leveraging future cash flows to accelerate growth and expansion.
Leadership Statements
Nasser Al-Majed, Chairman of Binbar Real Estate, stated:
The fund marks the beginning of our innovations in direct real estate financing, aimed at developing the leasing market and supporting the Kingdom’s growing operational investment landscape.
Majed Al-Zahrani, Partner and CEO of Binbar Real Estate, added:
Financing based on utility contracts represents a transformational step in real estate asset financing, building trust between investors, developers, and tenants, and enhancing sector sustainability.
Broad Market Impact
Marhoon offers the private sector a flexible financing solution that doesn’t require giving up equity or fixed assets, enabling companies to secure liquidity for continued growth.
It also helps enhance the reliability of lease contracts, introducing new financial tools that promote real estate sustainability.
At a national level, the fund contributes to diversifying Saudi Arabia’s financing ecosystem and aligns with Vision 2030 goals to empower the private sector.
How It Works
When a leasing company seeks financing from the fund, it temporarily assigns its rights to future rental income to the fund, which uses these cash flows as collateral.
In the event of a default, the executive enforceability of the contracts allows the fund to collect payments directly from tenants transparently and efficiently.
Thus, a lease agreement transforms from a financial obligation into an active financing asset.
Smart Real Estate Financing for a Dynamic Future
Marhoon represents a new era of smart real estate finance, blending technology, legal frameworks, and investment flexibility.
It empowers Saudi companies to grow without liquidating their core assets, supported by institutional confidence that aligns with the Kingdom’s evolving financial and regulatory landscape.
العربية (Arabic) To read the article in Arabic, click here
