Damac gets approval to sell off-plan in KSA
Dubai-based developer is one of the first to get license under new law
Damac Properties is one of the first private developers to be granted a license to develop and sell properties off-plan in Saudi Arabia, the company announced yesterday.
The Saudi Arabian Ministry of Commerce and Industry has introduced new laws to permit the practice, making the process more transparent and accessible, while also implementing better protection measures – including escrow accounts and a real estate register - for both investors and customers.
The moves are designed to help promote sustainable growth in KSA’s real estate sector.
Damac, a subsidiary of Damac Holdinghas been working in Saudi Arabia for the past five years and is one of the first companies to be granted an official license to develop and sell properties off-plan under the new real estate law.
Ziad El Chaar, Managing Director of Damac Properties said: “Damac Properties has been certified under the new register of qualified real estate developers and has established escrow accounts for its off-plan sales. We welcome and praise these measures as they aim to provide greater confidence to investors and bring further transparency to the sector’’.
El Chaar said the new license would be a launch pad for Damac Properties’ expansion plans in to the Kingdom.
“Saudi Arabia is an extremely attractive market for us, and we are looking at ways to expand our investments in KSA in view of its importance to the region. We are also eagerly awaiting the issuance of the mortgage law, which will play an active role in stimulating local and foreign investment in Saudi Arabia’s real estate market.”
The company is currently constructing Al Jawharah, a luxury residential tower on the Jeddah Corniche. Main contractor is Gulf Technical Construction, a subsidiary of Drake & Scull. Enabling works are complete and work on the tower is well underway.