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Saudi property Developer Dar Al Arkan plans to launch a new residential project in Abu Dhabi next year as the UAE real estate market rebounds from a coronavirus-induced slowdown.
The project will be the company’s fourth in the UAE and its first in Abu Dhabi, Deputy Chairman Ziad El Chaar told National.
The Tadawul-listed company is worth more than 32 billion riyals ($8.53 billion) and is currently building three residential projects in Dubai – Dar Al Arkan Pagani Tower near Dubai Canal, Urban Oasis in Missoni and Downtown Dubai W Residences.
“Abu Dhabi is a promising market…we are in discussions with various parties to acquire some key sites to enter the market as soon as possible,” Mr. El Chaar said.
The new project, expected to be launched in the first quarter of next year, will serve “second home buyers, investors and end users who are now living in Abu Dhabi’s old quarters and looking to move to these well-served communities,” he said.
The project will also focus on Saudi citizens, as “a large number of Saudi nationals also invest in Abu Dhabi and spend most of their holidays in Abu Dhabi”.
Mr El Chaar did not disclose the total cost of the project, but said the company’s projects were “considerable”, each worth about “AED1 billion ($272 million)”.
The three Dubai projects currently under construction are worth about Dh4.5 billion, he said.
This UAE real estate market It rose sharply in 2021 as it recovered from the pandemic-induced slowdown. The trend has continued this year as the country’s economy remains on a strong growth trajectory.
Both Dubai and Abu Dhabi have recorded strong sales transactions this year.
Abu Dhabi recorded 7,474 property transaction According to figures released last month by the emirate’s Ministry of Municipalities and Transport, the first six months of the year were worth more than AED22.51 billion, including 3,568 real estate sales and purchases worth AED8.9 billion, and 3,906 mortgage transactions worth AED8.9 billion. 13.6 billion dirhams.
Dubai registered 25,972 real estate transactions in the first quarter of this year, the highest quarterly number since 2010, according to the data. Moasherthe official sales price index for the emirate published by the Dubai Land Department in partnership with the Dubai Land Department Property Finder.
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The Dubai market also hit a 12-year high in July in terms of the number of sales, Property Finder reports show.
The latest forecast from the Central Bank of the UAE shows that the UAE economy will grow by 3.8% in 2021 and is expected to grow by 5.4% in 2022 and 4.2% in 2023.
The International Monetary Fund expects the UAE economy to grow by 4.2 percent this year and 3.8 percent next year.
Dar Al Arkan is also expanding in Saudi Arabia, its home market, and other GCC countries such as Oman and Qatar.
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The company is partnering with the Oman Tourism Development Company (commonly known as Omran) to develop a mixed-use real estate project called “Aida” in Muscat with a total investment of 6 billion riyals.
The company said earlier this year that the 350-hectare project would be built in three phases.
The developer is also working with Qatar-based Qetaifan Projects to develop a high-end residential project on Qetaifan Island North.
In Saudi Arabia, the Arab world’s largest economy, the company is launching new projects in partnership with government entities such as Roshn, King Salman Park and King Abdullah Economic City, Mr. El Chaar said.
As part of its Vision 2030 plan, Saudi Arabia aims to diversify its economy away from oil. The country is currently building Neom — a $500 billion city of the future — along with other developments in Riyadh and other cities.
Mr El Chaar is bullish on the GCC real estate market amid accelerating economic growth.
“I can see a positive outlook for most markets given economic growth in the region, oil prices and low inflation compared to many countries around the world,” he said.
Saudi Arabia’s economy grew 11.8% in the second quarter. Highest growth rate over the past 10 years The first quarter, according to the General Statistics Office.
Dar Al Arkan will finance the new project through debt, equity and proceeds from off-plan sales, Mr. El Chaar said.
“Two weeks ago, we completed our 14th round of sukuk, and we managed to raise $400 million, even in a tough environment of changing interest rates. That’s how much international investors trust the brand,” he said.
Mr El Chaar said the money would be used “to support our ongoing funding programme as well as several areas of business development and construction”.
Updated: 08/16/2022 4:30AM
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