The local Saudi Real Estate Company has confirmed it has signed an agreement with the Riyadh-based Alinma Investment to purchase land in Riyadh.

In a statement released on the Saudi Stock Exchange (Tadawal), the firm said it will jointly acquire 4.5 million square metres of land at a cost of $480m in the kingdom’s capital.

The investment will be financed through a real estate fund managed by Alinma Investment, after licencing and regulatory approval has been given by the Saudi Arabian Capital Market Authority (Sama).

In June, MEED reported that another local real estate investment firm, Al-Rajhi United, also completed a $160m deal to buy a plot of land in Riyadh to develop a mixed-use project.

The location of the project will be adjacent to the northern ring road in northwest Riyadh.

Authorities have been trying to tackle the housing shortage across the country and in January, MEED reported that Saudi Arabia’s Housing Ministry plans to impose taxes on undeveloped land.

The ministry says the policy targets unused, privately owned land across the country that can be better used to solve the kingdoms housing problems.