The Public Investment Fund of Saudi Arabia (PIF) and Talaat Moustafa Group Saudi for Real Estate Development (TMG) have signed a Memorandum of Understanding (MoU) to assess potential cooperation on mixed-use real estate projects.

The agreement, announced on 7 June 2026, will focus on developments owned by the Public Investment Fund and its various projects across Saudi Arabia.

According to the announcement, the partnership will explore opportunities across residential, commercial, hospitality and retail segments, as well as integrated urban environments.

TMG is set to bring regional expertise and operational capability to the partnership, having delivered multiple large residential, commercial and hospitality projects in the region.

The companies added that the MoU could establish a collaborative framework for future phases, enabling additional investor participation, supporting knowledge transfer and expanding the private sector’s role as investors, partners and suppliers.

The MoU aligns with PIF’s broader strategic objective to diversify Saudi Arabia’s economy. As part of this mission, the fund is pursuing partnerships at both regional and international levels, seeking to attract investment and further develop industries seen as priorities within the country.

The sovereign fund is partnering with private-sector firms to invest in real estate projects, aiming to maximise long-term value and support urban innovation.

Through coordinated investment, projects within this ecosystem aim to enhance quality of life, modernise living standards and create sustainable, people-centred cities.

PIF’s urban development portfolio, one of six new ecosystems, includes housing, retail, office and community spaces, along with essential services.

PIF is leading the development of several major real estate initiatives and “transformative giga-projects” across the Kingdom. One of its national goals is to raise home ownership among Saudi citizens to 70% by 2030.

The fund’s current strategy, covering 2026–30, focuses on building competitive ecosystems, unlocking asset potential, delivering sustainable returns and supporting the Kingdom’s economic transition.

The latest MoU between PIF and TMG is non-binding and remains subject to satisfaction of certain conditions and the receipt of required regulatory and internal approvals.