“We are forecasting moderate growth in costs in the next 12 months,” says Vice Chairman Ziad El Chaar
Saudi developer Dar Al Arkan is planning to launch a new residential project in the UAE’s capital next year, company Vice Chairman Ziad El Chaar told Zawya Projects.
“Our growth in the market will consistently focus on the second home and vacation home space, as this is where we have the expertise and can add the most value,” he stated.
The first two phases of Shams Ar Riyadh will be handed over before year-end, El Chaar said.
Shams Ar Riyadh, a mixed-use development project, covers an area of more than five million square metres (sqm) divided into five zones, according to 2021 Annual Report. After selling zone 2, estimated at 1.8 million sqm to SABIC for their employee housing, the developer is currently developing the remaining four zones, an area of over 3.1 million sqm.
El-Chaar said infrastructure works are in full swing at Shams Al Arous in Downtown Jeddah. The project covers an area of 863,000 sqm and is divided into four zones, which include a strip mall development, according to the Annual Report.
In addition, the Saudi-listed developer expects to start mobilisation at ‘AIDA,’ a mixed-use real estate project in the Yiti area of Muscat, by the first quarter of 2023.
In December 2021, Dar Al Arkan signed a MoU with Oman Tourism Development Company to develop a 3.5 million sqm site part of the hilltop site of Muscat, according to the Annual Report.
Excerpts from the interview:
Q: What is the status of Shams Ar Riyadh? Has construction started on Shams Al Arous in Jeddah?
Shams Ar Riyadh, which spans over five million sqm, is our premium master plan in Riyadh, comprising commercial and premium residential spaces. Two phases are due for handover before year-end, while the other three phases will be completed by June 2023. At Shams Al Arious, all infrastructure works are in full swing, with the delivery of the project expected in the first quarter of 2023.
Q: Could you share updates on Dar Al Arkan Pagani Tower?
The Pagani Tower is considered an outstanding piece of architecture and design. Work on the tower is currently progressing very well and we are aiming to complete the handover in a year.
The first show apartment – a penthouse – was inaugurated by Founder & Chief Designer Pagani Automobili Horacio Pagani. Delivery of the units is set for December 2023.
Dar Al Arkan always approaches partnerships in a very considerate way. We look for partners who are masters in their own right, especially in design and engineering, to offer our customers unmatched quality and an investment that will increase in value and beauty over time.
Q: Do you plan to launch more branded towers in the UAE? Will you take this concept of branded towers to Saudi Arabia?
We have three towers in the UAE currently under progress [$218 million] Urban Oasis tower in collaboration with Missoni, Pagani Tower, and [$272 million] W Residences Dubai – Downtown. We also plan to start a new residential project in Abu Dhabi next year.
Looking at the UAE market, there are always opportunities to consider. It is a resilient market, given the steady pace of economic growth, oil price, and lower inflation compared with many countries globally.
Our growth in the market will consistently focus on the second home and vacation home space, as this is where Dar Al Arkan has the expertise and can add the most value.
As for the launch of branded towers in Saudi Arabia, this is undoubtedly an attractive offering, but it will depend on the partner coming on board. It has to be a brand that resonates with our customers and can be distinctive and offer a unique value proposition.
Q:How much progress have you made with Omran on the multi-phased development part of the hilltop site of Yetti & Yenkit?
Our first project in Oman is called “AIDA” and is one of the largest premium, mixed-use real estate projects located in the Yiti area in Muscat overlooking the sea of Oman. The master plan is finalised and submitted, as we expect mobilisation to the site by the first quarter of 2023.
Q: Have you seen tender prices increase substantially in the last two years?
The construction industry has seen a significant increase in commodity and essential materials prices over the last 24 months. We are forecasting moderate growth in costs in the next 12 months.