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AlRajhi .... plans big investment in Riyadh project.

AlRajhi in deal to develop key Saudi project

RIYADH, May 25, 2015

AlRajhi United, a leading investment company in Saudi Arabia, said it has completed a land acquisition deal worth nearly SR600 million ($163 million) in Riyadh to develop one of the most distinguished projects in the kingdom.

The development, which will come up on a land adjacent to the Northern Ring Road in northwest Riyadh, has already attracted prominent, well-known retail brands, said a statement from the company.

The company said it has completed the organisational, administrative and logistic preparations for developing one of the largest real estate projects in Riyadh.

“This investment decision will benefit from positive expectations towards the construction sector, which anticipate the consolidation of its current position as one of the most prominent and fast growing sectors of the economy,” said Fawaz Sulaiman AlRajhi, chairman of AlRajhi United.

The investment sector would continue to benefit from the strong underpinnings of the Saudi economy, he stated.

"The private sector, and especially the real estate investment sector will be positively affected by political stability and the capital investment made by the government," remarked AlRajhi. "The real estate sector will continue to benefit from a raft of related legislative measures," he added.

Recent economic studies indicate that the construction sector in Saudi Arabia will enjoy growth of around 6.6 per cent per year during 2015 as a result of government spending on massive projects. This represents a 35 per cent increase compared to 2010.

A real estate investment specialist said the fundamentals of the local economy “indicate renewed high levels of confidence among a wide spectrum of capital investors, despite international and regional events which had been expected to dampen enthusiasm and reduce the attractiveness of the investment environment.”

Commenting on the deal, AlRajhi said the company’s strategy and investment priorities focus on the development of unique, contemporary projects that add value to built-up urban areas and offer enhanced life style options.

"Local communities have witnessed accelerating change following developments in consumer living standards and reflecting the growing affluence of individuals. This will have a positive impact on the growth of retail markets and the emergence of mixed-use projects," he added

Economic reports indicate that, as a result of continued growth in consumer spending and the increase in the number of Saudi employees in the private sector, there will be growth in retail outlets of about eight per cent by the end of 2016.

Today retail markets, and especially mixed-use projects, encompass 1.5 million sq m. Occupancy rates have increased noticeably in most retail outlets by up to12 per cent, the report added.-TradeArabia News Service




Tags: Saudi | investment | project | land |

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