{"id":57098,"date":"2017-06-06T23:02:59","date_gmt":"2017-06-06T16:02:59","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=57098"},"modified":"2017-06-06T21:09:30","modified_gmt":"2017-06-06T14:09:30","slug":"sizeable-saudi-arabian-market-a-big-draw-for-newly-appointed-dar-al-arkan-chief-executive","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sizeable-saudi-arabian-market-a-big-draw-for-newly-appointed-dar-al-arkan-chief-executive\/","title":{"rendered":"Sizeable Saudi Arabian market a big draw for newly appointed Dar Al Arkan chief executive"},"content":{"rendered":"


\nThe size of the Saudi Arabian market and the desire for bricks and mortar investments were the two things that drove former Damac MD Ziad El Chaar towards his new role leading Dar Al Arkan, he said.”You are in a very big market, where everybody is vastly interested to invest in real estate products,” Mr El Chaar told The National in a telephone interview following his appointment as chief executive of the Saudi developer.
\n“So you have a big demand to satisfy and there is an opportunity in presenting those investors with new, innovative products and projects. This is the main attraction. And you have a household name like Dar Al Arkan to supply these products to satisfy this demand.”Dar Al Arkan is Saudi Arabia’s biggest listed property developer, with revenue of 1.87 billion riyals (Dh1.83bn) last year and shareholders’ equity of over 18bn riyals. However, the company recently posted its lowest quarterly revenue in years for the first three months of 2017 as revenues were impacted by the recent introduction of the “white land tax” in the kingdom – a tax brought in on undeveloped land to encourage housing development by penalising those who hoard land as a store of value. The company reported a 17 per cent decline in first-quarter revenue to 360.3 million riyals, while net profit fell year-on-year by 79 per cent to 12m riyals.
\n“Dar Al Arkan, until now, is still primarily a land developer. Its retail or recurring segment is approximately 10 per cent of revenues,” said Ayub Ansari, an analyst with Bahrain-based Securities and Investment Company.”Obviously it has a huge land bank in Saudi Arabia and everyone knows there is a massive demand for housing there. So on that front, the company is nicely placed if there is massive development in Saudi housing.”
\nThe company has a land bank of close to 40 million square metres. Although this could be viewed as a liability in the short term, once it brings forward proposals to develop sites these will no longer be subject to the tax. Moreover, Mr Ansari argues that if the tax achieves its stated aim of bringing down land values, it will be beneficial for developers in the long run as it will make projects easier to stack up.
\nMr El Chaar said that Dar Al Arkan is bringing forward plans for three major company-owned sites in the kingdom’s biggest cities, including a 3.2 million square metres plot in Riyadh, a 1 million sq metres plot in Jeddah, and an 8 million sq metres plot in Dammam.”The three master plans are under final licensing. We have started the design of the final stages of infrastructure, and some of the main elements we would like to launch under these master plans,” Mr El Chaar said.
\nHe said that these would be converted into modern, mixed-use communities with apartments, town houses and villas as well as community facilities like schools, retail units and jogging tracks. They will also contain serviced apartments.Mr Ansari said that in theory at least, Dar Al Arkan is also well placed as rules governing Saudi off-plan sales are relaxed as the government seeks to encourage the development of more affordable housing.
\n“Whether or not it’s able to execute, that’s another thing.”mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Sizeable Saudi Arabian market a big draw for newly appointed Dar Al Arkan chief executive<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The size of the Saudi Arabian market and the desire for bricks and mortar investments...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-57098","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-eQW","jetpack-related-posts":[{"id":56872,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-developer-dar-al-arkan-appoints-former-damac-managing-director-el-chaar-as-chief-executive\/","url_meta":{"origin":57098,"position":0},"title":"Saudi developer Dar Al Arkan appoints former Damac managing director El Chaar as chief executive","date":"June 4, 2017","format":false,"excerpt":"\r Ziad El Chaar, the former managing director of Damac Properties, has been appointed as the chief executive of Riyadh-based property developer Dar Al Arkan, the Saudi company said on Sunday.Dar Al Arkan's board approved a proposal for Mr El Chaar to become chief executive last Thursday, effective immediately, the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":56930,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/former-damac-md-appointed-ceo-of-major-saudi-developer\/","url_meta":{"origin":57098,"position":1},"title":"Former Damac MD appointed CEO of major Saudi developer","date":"June 4, 2017","format":false,"excerpt":"\r Ziad El Chaar appointed as CEO of Dar Al-Arkan\r \r Source : arabianbusiness.com\r Read more...Former Damac MD appointed CEO of major Saudi developer","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":106436,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-construction-giant-dar-al-arkan-to-redeem-400m-sukuk\/","url_meta":{"origin":57098,"position":2},"title":"Saudi construction giant Dar Al Arkan to redeem $400m sukuk","date":"April 22, 2019","format":false,"excerpt":"\r Dar Al Arkan Real Estate Development Company says to pay sukuk out of its internal cash reserves\r \r Source : arabianbusiness.com\r Read more...Saudi construction giant Dar Al Arkan to redeem 0m sukuk","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":131503,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudi-arabias-first-3d-printed-villa-unveiled\/","url_meta":{"origin":57098,"position":3},"title":"Saudi Arabia\u2019s first 3D printed villa unveiled","date":"October 30, 2022","format":false,"excerpt":"\r Launched by Dar al Arkan, the two-storey villa is the first of its kind in the Kingdom\r \r Source : arabianbusiness.com\r Read more...Saudi Arabia\u2019s first 3D printed villa unveiled","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/10\/Untitled-design-1000x667-1.png?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":44111,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arkan-building-materials-annual-profit-declines-25\/","url_meta":{"origin":57098,"position":4},"title":"Arkan Building Materials annual profit declines 25%","date":"February 14, 2017","format":false,"excerpt":"\r Abu Dhabi-based Arkan Building Materials reported a 25 per cent drop in full-year profit as market pressure on prices also drove down revenues.Net profit fell to Dh75.7 million compared to the previous year's Dh101.1m because of damage from the heavy rainstorm that hit the UAE last March.Pressure on market\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":53331,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-prices-for-energy-weigh-on-abu-dhabis-arkan\/","url_meta":{"origin":57098,"position":5},"title":"Higher prices for energy weigh on Abu Dhabi's Arkan","date":"May 1, 2017","format":false,"excerpt":"\r Abu Dhabi's Arkan Building Materials reported a decline in profit of more than 65 per cent in the first quarter, weighed down by higher energy prices.Net profit fell to Dh10.59 million in the first three months of this year compared to Dh30.73m in the same period a year earlier.\u2026","rel":"","context":"In "Property 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