- Al Takhassousi, An Nakheel, Riyadh 12384
- info@al-tayyar.com.sa
- 0555398969
Case Study
Drafting a Real Estate Investment and Development Agreement Exceeding SAR 800 Million in Makkah
Dispute Value
SAR 800 million.
High-value real estate acquisition and development projects require a comprehensive contractual framework governing each stage of the transaction, the parties’ respective rights and obligations, financing and implementation arrangements, allocation of risk, security provisions, events of default, termination rights, and dispute resolution mechanisms.
In this matter, Atyar Advocates and Legal Consultants provided legal services to a private client in connection with an investment project involving the acquisition and development of a property in Makkah, with an investment value exceeding SAR 800 million.
The scope of work included providing legal advice, preparing a comprehensive legal study, and drafting the real estate investment agreement governing the acquisition, development, and investment of the property.
The agreement addressed the parties’ financial and implementation obligations, the required safeguards, and the legal risks associated with the project, while maintaining strict confidentiality regarding the client’s identity, the property, and the transaction’s financial and commercial terms.
Quick Matter Overview
Client
Private client — identity withheld for confidentiality
Real Estate Investment and Development Value
More than SAR 800,000,000
Project Location
Makkah, Saudi Arabia
Type of Transaction
Acquisition, development, and investment of real estate
Practice Area
Real estate contracts, land investment, and real estate development
Scope of Work
Legal advice, comprehensive legal study, and drafting of the investment agreement
Publication Status
Scope of legal services published without disclosing the client’s identity, property details, transaction parties, or confidential financial and commercial terms
Background of the Real Estate Investment and Development Project
The matter concerned a high-value investment project involving the acquisition and development of a property in Makkah, with an investment value exceeding SAR 800 million.
Given the substantial value of the investment and the integration of the acquisition and development elements within a single project, the matter required a structured legal approach beginning with an assessment of the client’s objectives and the nature of the proposed investment.
The work also involved reviewing the available property information and documents, analysing the transaction structure, and identifying the principal legal, financial, and implementation risks.
The client engaged Atyar Advocates and Legal Consultants to provide legal advice, prepare a comprehensive legal study, and draft an investment agreement establishing a clear framework for the acquisition and development of the property and regulating the parties’ rights, obligations, and implementation arrangements.
Investment Value
More than SAR 800,000,000
Investment & Development
Acquisition, development, and investment of a real estate asset
Applicable Legal Framework
Saudi Real Estate, Investment & Contract Laws
Nature of the Investment Transaction
The transaction combined the acquisition of a high-value real estate asset with its development and investment as part of an integrated project in Makkah.
The nature of the project required the contractual relationship to be regulated from the negotiation and acquisition stage through the development and implementation phases.
The principal legal aspects of the transaction included:
- Identifying the property and its principal legal particulars.
- Reviewing title and ownership documents.
- Examining the rights and restrictions affecting the property.
- Regulating the property acquisition mechanism.
- Defining the conditions for transfer of ownership.
- Structuring the investment value and payment schedule.
- Defining the scope of the real estate development works.
- Regulating the project implementation stages.
- Allocating the parties’ respective obligations.
- Distributing responsibilities and risks.
- Addressing licensing and regulatory approval requirements.
- Structuring project financing and costs.
- Establishing legal and financial safeguards.
- Addressing delay and non-performance.
- Regulating default, rescission, and termination.
- Establishing a dispute resolution mechanism.
- Protecting confidential information and documents.
Key Legal Challenges
High Investment Value
The project value exceeded SAR 800 million, requiring careful regulation of the financial obligations, security arrangements, implementation procedures, and liability.
Integration of Property Acquisition and Development
The transaction extended beyond the acquisition of a real estate asset and included its development and investment, requiring an agreement capable of governing several interconnected stages.
Review of Ownership Documents
The matter required review of the available information and documents relating to the property and any rights or restrictions that could affect its acquisition or development.
Defining the Development Scope
The transaction required clear definition of the works, stages, and responsibilities relating to planning, design, implementation, supervision, and handover.
Structuring Financial Obligations
The agreement had to regulate payments, deadlines, funding sources, allocation of costs, and the consequences of delayed or failed payment.
Allocation of Risk
The project required allocation of risks relating to ownership, licences, financing, costs, delay, and implementation.
Regulation of Project Stages
The agreement had to define the implementation phases, deadlines, milestones, and approval requirements applicable before progression to the next stage.
Protection of the Parties’ Rights
The transaction required appropriate safeguards and clear remedies to protect the parties in the event of delay, default, or non-performance.
Rescission and Termination
It was necessary to define the circumstances permitting termination and the resulting consequences for the property, payments, completed works, and continuing obligations.
Maintaining Confidentiality
The client’s identity, property information, investment value, transaction structure, financial terms, commercial terms, and non-public documents were treated as strictly confidential.
Our Legal Strategy
The legal team at Atyar Advocates and Legal Consultants adopted a comprehensive approach to assessing the project and drafting the real estate investment and development agreement.
Understanding the Client’s Objectives
The firm identified the client’s objectives for acquiring and developing the property, the nature of the project, its proposed stages, and the intended investment outcome.
Reviewing the Property Information
The available documents and information concerning the property, its location, ownership, rights, restrictions, and related obligations were examined.
Analysing the Transaction Structure
The relationship between acquisition, transfer of ownership, development, and investment was analysed to determine the appropriate contractual framework.
Assessing Legal Risk
The firm considered risks associated with ownership, licensing, financing, implementation, costs, and delay.
Structuring Financial Obligations
The agreement addressed the investment value, payment arrangements, deadlines, financing mechanisms, allocation of expenses, and consequences of delayed payment.
Structuring the Development Stages
The project phases, requirements applicable to each stage, approval procedures, implementation arrangements, monitoring mechanisms, and handover obligations were defined.
Preparing the Legal Study
A comprehensive legal study was prepared addressing the nature of the transaction, principal risks, obligations, and appropriate structuring options.
Providing Legal Advice
The client received advice concerning the investment structure, rights and obligations, risk allocation, safeguards, and contractual provisions required to protect the client’s position.
Drafting the Investment Agreement
A comprehensive agreement was prepared governing the acquisition, development, and investment of the property and regulating the financial and implementation obligations, safeguards, default, termination, and dispute resolution.
Legal Services Provided
Legal Advice
Providing legal advice concerning the project structure, property acquisition, development stages, financial and implementation obligations, legal risks, and required safeguards.
Comprehensive Legal Study
Preparing a specialised legal study analysing the investment structure, property information, project stages, legal risks, and the client’s contractual position.
Drafting the Investment Agreement
Preparing a comprehensive real estate investment and development agreement regulating the acquisition, development scope, financing, implementation, safeguards, default, termination, and dispute resolution.
Legal Insight
A real estate investment and development agreement should do more than record the parties’ understanding. It should provide a comprehensive legal and operational framework governing the project from acquisition through development and implementation.
Careful drafting becomes particularly important where the project has a substantial value and involves multiple stages and obligations. The agreement should clearly define responsibilities, safeguards, risks, financing arrangements, implementation procedures, and handover requirements.
An early legal assessment helps identify risks and contractual gaps before execution, determine the appropriate structure, and prepare an agreement capable of addressing disputes concerning ownership, performance, costs, or responsibilities.
Legal Value Delivered to the Client
- Identified an appropriate legal structure for the investment.
- Reviewed the available property information and documents.
- Regulated the relationship between acquisition and development.
- Defined the project scope and implementation stages.
- Structured the financial obligations and payment arrangements.
- Allocated risks and responsibilities.
- Addressed licensing and regulatory approval requirements.
- Regulated project-related contracts and implementation arrangements.
- Established appropriate legal and financial safeguards.
- Addressed delay and non-performance.
- Defined default, rescission, and termination provisions.
- Established a clear dispute resolution mechanism.
- Reduced ambiguity and inconsistency between contractual provisions.
- Provided a legal and interpretative reference for the parties.
- Protected the confidentiality of the client and project information.
- Supported stability throughout the investment and development stages.
Related Practice Areas
Drafting Real Estate Contracts
Preparing sale, lease, investment, and development agreements tailored to the nature of the transaction and the parties’ objectives.
Land Investment Agreements
Drafting agreements governing the investment and development of land and defining returns, obligations, and implementation mechanisms.
Real Estate Development Agreements
Regulating relationships between property owners, developers, investors, contractors, and other parties connected with a development project.
Real Estate Acquisition Agreements
Preparing and reviewing high-value property acquisition agreements and regulating ownership transfer, safeguards, and financial obligations.
Review of Ownership Documents
Examining the documents relating to ownership and identifying any rights or restrictions capable of affecting the transaction.
Contract Review and Amendment
Analysing existing agreements, identifying risks, and revising or amending provisions to protect the client’s rights.
Documentation of Real Estate Agreements
Providing legal support in reviewing documentation requirements applicable to real estate agreements and supporting records.
Real Estate Contractual Disputes
Representing clients in disputes arising from breach of acquisition, investment, and development agreements.
Legal Team Responsible for This Matter
Prof. Dr. Turki Al-Tayyar
Founder and Managing Partner, and an expert in the judiciary, legal practice, arbitration, and university education, with more than 25 years of combined experience.
Mr. Salem Saad Al-Dosari
Partner specialising in administrative contracts, investment, and litigation, with extensive experience in administrative and commercial cases.
Practice Areas Related to This Matter
- Real Estate Dispute Resolution
- Property Ownership Claims
- Litigation Before the General Courts
- Investment Disputes
- Government Contracts and Administrative Matters
- Compensation Claims
Need Assistance Drafting or Reviewing a Real Estate Investment and Development Agreement?
If you are preparing to acquire property, invest in land, or undertake a real estate development project, Atyar Advocates and Legal Consultants provides legal advice, research, comprehensive studies, drafting, review, amendment, documentation, representation, and litigation services throughout Saudi Arabia.
جاهز لحماية حقوقك أو تطوير أعمالك؟
تواصل معنا اليوم واحصل على استشارة قانونية موثوقة
سواء كنت فردًا تبحث عن تمثيل قانوني موثوق أو شركة تحتاج إلى دعم قانوني متخصص، نحن في شركة أطيار للمحاماة والاستشارات القانونية جاهزون لمساعدتك. دعنا نكون شريكك القانوني في كل خطوة، بخبرة تتجاوز 23 عامًا في الأنظمة السعودية.
بيانات الاتصال
- شارع التخصصي، النخيل، الرياض 12384
- 3132 شارع الأمير تركي، الكورنيش، 6309, الخبر
- Info@al-tayyar.com.sa
- 00966555398969
مجالات الممارسة
القانون التجاري والشركات
صياغة العقود والوثائق القانونية
القانون المالي والمصرفي
الضرائب والزكاة والجمارك
العقارات والملكية الخاصة
© 2025 All Right Reserved Al Tayyar Leagal company