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05 March 2024

Damac licensed to sell off-plan properties in Saudi

Firm will deliver eight major projects in Dubai over the next 12 months (FILE)

By Staff

Dubai-headquartered Damac Properties announced on Monday that it is amongst the first to be granted an official licence to develop and sell properties off-plan under the jurisdiction of the kingdom’s new real estate law.

“Damac Properties has been certified under the new register of qualified real estate developers and has established escrow accounts for its off-plan sales,” said Ziad El Chaar, Managing Director of Damac Properties.

The Saudi Arabian Ministry of Commerce and Industry has introduced new laws to advance the off-plan real estate market by making it more transparent and accessible, as well as offering additional protection and services to investors and customers.

“We welcome and praise these measures as they aim to provide greater confidence to investors and bring further transparency to the sector,” added El Chaar. The new regulatory frameworks, including escrow accounts and a real estate register, have been initiated to ensure that further growth of the real estate market is sustainable and viable, a Damac statement said.

“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,” El Chaar added.

Damac has been in the Saudi market for five years, and is currently constructing Al Jawharah, a luxury residential tower on the Jeddah Corniche, the company’s statement said. “Al Jawharah is now fully regularised with the newly introduced laws and there is a lot of local interest in this project. We are now again actively marketing and selling units in this development,” said El Chaar.

Gulf Technical Construction, a subsidiary of Drake & Scull, has undertaken construction works at the multi-storey tower, which offers five bedroom penthouses as well as 1, 2, 3 and 4-bedroom apartments.

According to Damac, enabling works have been completed and customers will be able to soon see the tower rising up from the site overlooking the Jeddah Corniche.
The real estate developer maintains that the Saudi license is a launch pad for its expansion plans in 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,” said El Chaar.

Damac further added that it will deliver eight major projects in Dubai over the next 12 months, and currently has more than 12,000 units at various stages of construction across the MenaA region.

In the last 12 months, the company said it has awarded $1b worth of new contracts, including 15 main contracts in Dubai, two main contracts in Abu Dhabi and one main contract in KSA.