Arada enters Saudi market with Riyadh project
Arada enters Saudi market with a Riyadh joint venture
UAE developer Arada enters Saudi market for the first time through a joint venture with local developer Xtopia. Known as Arada KSA, the venture will build a master-planned community in north-eastern Riyadh, near the main airport.
The project spans 2.5 million square metres and has a gross development value of AED13.7 billion. It will include 3,500 villas and townhouses surrounded by 100,000 trees. Sales are due to start next year, construction is scheduled to begin in mid-2027, and handover is expected about five years later.
What Arada does
Arada is a UAE property developer co-owned by princes from the Sharjah and Saudi royal families. Through Arada KSA, it is partnering with Xtopia on the Riyadh development, while a Capital Market Authority-regulated investment structure managed by Al Rajhi Capital will fund the joint venture. Arada will use Australian company Roberts Co as construction manager, with local companies handling subcontracting.
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The Saudi market entry
Arada KSA has access to a 10 million square metre land bank worth AED49 billion across Riyadh, Jeddah and Mecca.
Saudi housing transaction volumes halved in the first quarter, while sales value fell 57 percent to SAR22 billion. In Riyadh, volumes and sales prices fell 82 percent, although apartment values rose 6 percent year on year, according to Knight Frank Mena.
Arada’s view on entering during a downturn
Arada’s group CEO Ahmed Alkhoshaibi said the company entered while the market was weak to negotiate land terms: “When the market is down, you can negotiate very good terms.” The company expects the majority of buyers to be Saudi, with a reasonable percentage of expatriates, citing new freehold rules.
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