Dar Al Arkan bids to build 50,000 Saudi homes

Real-estate developer in negotiations with Saudi Ministry of Housing

Saudi aims to build 500,000 houses over ten years to cope with its burgeoning population.
Saudi aims to build 500,000 houses over ten years to cope with its burgeoning population.

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Saudi real-estate developer Dar Al Arkan has announced it has been negotiating with the Ministry of Housing to build around 50,000 housing units in four years.

This falls under the rubric of the ten-year housing project initiated by King Abdullah, Custodian of the Two Holy Mosques, to build 500,000 housing units.

At a press conference, Dar Al Arkan chairman Yousef Al Shelash also confirmed the successful repayment in the same day of its Islamic bonds (Sukuk-II) amounting to $1bn through Deutsche Bank, exactly on its due day.

"Our repayment of the bonds on the exact due date, along with the newly cabinet passed law of mortgage, will strongly enhance our capabilities, especially in terms of finance, to carry out building this number of units once the negotiations ends in our favour," said Al Shelash.

"We will repay in the coming two years two issues of Islamic bonds with a total value of SAR2.4bn, one issue with a value of SAR750m due in 2014 and the other valued at SAR1.69bn due in 2015."

Al Shelash said "appropriate companies" would be established "to handle different type of business lines and acquire millions meters of lands, carrying out many mega commercial and residential building project, giving rewarding return to our investors, and building sound financial and infrastructural base."

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