In an interview with Al Arabiya, the CEO of the Saudi Real Estate Company, Ibrahim Al-Alwan, confirmed the recommendation of the Board of Directors at the Extraordinary General Meeting to increase the capital of the company by issuing priority shares.
Al-Alwan indicated that the total amount to be obtained is 1.6 billion riyals and his goal is to finance and implement his future plans and projects, expand his various activities and new projects. The large activity in the Saudi market has kept pace with the 2030 visionHe directs Riyadh’s strategy to increase the capital’s population from 8 million to 15 million over the next ten years.
He felt that the great momentum in the Saudi real estate market gives the oldest real estate development company, “Saudi Real Estate”, which has been operating for 45 years, the opportunity to keep up with the company’s strategy with that of Riyadh, and to link the expected growth of our performance with the pace of major projects, and therefore the need to increase capital.
He also indicated the company’s intention to restore and revive some of its previous projects, as well as rebuild in characteristic places in Riyadh, noting that there are many new projects at the studio, and will be part of the capital increase to finance them, as well as finance other projects in implementation course.
It revealed that Saudi Real Estate is targeting large projects with Qiddiya, Roshan and other major projects related to Vision 2030 and the capital increase will be a first step towards these future projects.
He described the residential sector as one of the most important sectors on which Riyadh’s development strategy is based, and “Saudi Real Estate” has a plan to clearly focus on housing projects, after the completion of the suburban project with 575 housing units, and we have seen the demand and this encourages expansion in this field.
He said the residential projects in Saudi Arabia are focusing on quality of life, and therefore we are looking for integrated projects for a range of quality services in the next phase, part of which will be an investment in office buildings.
Regarding the “building code”, Alwan described it as “useful for organizing the market from within, standardizing standard and helping to implement projects, which for us is an addition rather than a restriction. “
He stressed that making profits in Real estate projects take two to three years to give good returns, indicating that the company has relied on off-plan sales, which have become part of the business fundamentals in the real estate industry, and one of the solutions to early results. in faster and reduce financial burdens.
He said property prices in Riyadh have seen increases over the past five months due to lack of supply and increased demand, and we are looking forward to stability in the market through new projects.
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