Dar Al Arkan in talks to build 50,000 units
Saudi developer looking to capitalise on an expected growth in demand after passing of mortgage law
Yousef Al Shelash, chairman of Saudi Arabia’s largest-listed property developer, Dar Al-Arkan has said the firm is in talks with the Ministry of Housing for the construction of some 50,000 housing units within four years.
The move comes as part of the 10-year initiative launched by King Abdullah to build 500,000 residential units.
The company has recently repaid, through Deutsche Bank, its $1bn Islamic bonds (Sukuk-II) on its due day, Al Shelash told reporters in the capital, Riyadh.
“So, as we did, we will repay in the coming two years two issues of Islamic bonds with a total value of $640m. One issue with value of $200mdue in 2014 and the other valued at $450.6m due in 2015,” he said.
Earlier this month, Saudi Arabia passed a long awaited mortgage law that is expected to fuel a growth in demand for home financing. With the majority of its population under the age of 30, the Kingdom faces a housing shortage that needs to be addressed quickly.
However, the high prices of land and the legal complications in the country have slowed down the purchase of land, analysts have warned.
Despite this, Al Shelash told Gulf Times, a Qatari newspaper, that he was optimistic about the regulatory changes and that there were opportunities there for Dar al Arkan.
