Dar Al Arkan: Lands subject to fees in final stages of obtaining permits

Yousef Al-Shelash, Chairman of Dar Al Arkan Real Estate Development Co.

Yousef Al-Shelash, Chairman of Dar Al Arkan Real Estate Development Co., said he does not expect any significant impact from the idle land fees on the company.
 

He explained that the lands in North Riyadh cover an area of 2.65 million square meters (sqm), and the project is in its final stages. Once sales permits are obtained in the coming period, these lands will be exempt from the fees.

In an interview with CNBC Arabia, Al-Shelash added that there is another plot in North Riyadh subject to the fees, covering 180,000 sqm, which is also in the final stages of obtaining construction permits.

He noted that Dar Al Arkan is a real estate developer, and therefore does not retain land for long periods, especially in major cities like Riyadh and Jeddah. Accordingly, the company does not expect a significant impact from such fees, though it remains cautious and prepared for any developments related to the fees, such as permit delays or similar issues.

In mid-September, the company stated that its lands in North Riyadh, located within the area subject to the idle land fees, cover approximately 2.65 million square meters, subject to a 5% fee rate. It added that other plots totaling 181,000 square meters are subject to a 10% fee rate.

Al-Shelash stated that the company’s total project portfolio exceeds SAR 97 billion ($26 billion), distributed between Dar Al Arkan and its international arm Dar Global Co., accounting for nearly SAR 30 billion ($8 billion) and SAR 65 billion ($18 billion), respectively.

He added that the company’s investments in the tourism sector total around $10 billion, covering projects across Saudi Arabia, including Riyadh, Jeddah, Makkah, Madinah, and the Eastern Province, as well as international projects in the UAE, Qatar, Oman, Greece, Spain, and the UK.

Regarding the newly announced Jeddah project, Al-Shelash said it is being developed on a one million sqm plot, recently acquired for SAR 4.5 billion. The infrastructure and superstructure development costs are estimated at SAR 7–8 billion, bringing total investments to SAR 12–13 billion.

The project will feature Trump Plaza, developed in partnership with The Trump Organization, along with expansive gardens and various property types.

He noted that the project will be financed through sukuk and local bank financing, part of which has already been secured. Currently, no additional funding is required, as the company has

sufficient internal resources. However, it may consider issuing sukuk in the future depending on project developments.

In February, Dar Al Arkan announced the acquisition of the Jeddah land for SAR 4.46 billion, through a consortium with Kenzy Al Arabiya Co. and a group of investors, in which Dar Al Arkan holds an 80% stake.