Dar Global has SAR 2.8B projects in Saudi market: CEO

The value of LSE-listed Dar Global Real Estate Co.'s projects since entering the Saudi market two months ago amounts to SAR 2.8 billion, as it targets investment in major cities with high demand from various nationalities, said CEO Ziad El Chaar, in an interview with Argaam.

The favorable amendments to the law on the residency for foreigners last March helped boost interest of foreign investors in the Saudi market, as the regulations for the distinguished residency law set certain conditions, including that the price of the property should not be less than SAR 4 million, which fueled the interest of foreign investors and opened the way for investment in luxury real estate, he added.

Dar Global launched the "Trump Tower" project in Jeddah at a value of SAR 2 billion, which is one of the tallest towers in the city at a height of 200 meters and consists of 47 floors, including luxury apartments overlooking the sea and a private club bearing the Trump brand, at a total cost of SAR 2 billion, with construction to begin next month and be completed by 2029, the CEO stated.

As for the future of the luxury real estate sector in Saudi Arabia, the top executive indicated that the market is very promising as the Kingdom has begun to attract global developers, which reflects a shift in the nature of demand for luxury real estate that meets the aspirations of the market and both Saudi and foreign investors.

He further stated that the company is working on projects in Dubai and Muscat, with an expected completion rate of 20% before the end of this year, and plans for large deliveries by 2027.

Chaar also said that the company is working on improving productivity and accelerating development operations, as it expects to complete major projects and deliver them between 2027-2029.

Dar Global was established and 88%-owned by Dar Al Arkan. Meanwhile, 12% of the company's shares were offered for public subscription on LSE last year, said the top executive.

The relationship between the two companies is complementary and not competitive, as Dar Al Arkan focuses on projects targeting Saudi citizens, while Dar Global specializes in providing luxury properties targeting foreign investors, according to the CEO.

He added that Dar Global is currently present in regional and international markets including Greece, Morocco and US cities such as Miami and New York, and also continues to invest in Dubai, where it recently delivered its first project there.

According to data available to Argaam, Dar Global was established in 2017 (under the name Dar Al Arkan International Real Estate Development) with the aim of investing in the global luxury real estate market.

Dar Global was listed on London Stock Exchange main market on Feb. 28, 2023.