Dar Al-Arkan managing director Abdullatif Bin Abdullah Al-Shelash
Saudi Arabian real estate developer Dar Al-Arkan has unveiled plans to build a new master planned community in Jeddah at a total estimated cost of US $2 billion (SAR 7.5 billion), according to a company statement.
The project, called Shams Al-Arous, will cover three million square metres and include more than 10,000 units as well as public parks, entertainment centres, shopping malls, offices, restaurants, schools and mosques.
Phase one of the project is expected to start in 2010 and will include construction of 2,000 units at a cost of $400 million, said the statement.
It did not say when phase one would finish, but the entire project is expected to take five years to complete.
Shams Al-Arous will be financed through a mix of its own generated funds, the company's operational cash flows and external funds, said the statement.
The project comes in line with the company strategy in developing large master planned communities in the local market to service strong demand in the housing sector, it said.
Dar al-Arkan reported on Saturday a 14.4% drop in third-quarter net profit due to what is said was a slowdown in the property market.
The company made a net profit of $164.3 million in the three months to September 30, down from $191.85 million a year earlier.
Last week Dar Al-Arkan managing director Abdullatif Bin Abdullah Al-Shelash told Construction Week that the company is currently finishing construction of its Al Qasr project in Riyadh which includes 4,000 units.
He added that construction of its $1.6 billion Shams Alriyadh housing development in Riyadh is expected to commence in the first quarter of next year and take three years to complete.
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