PIF’s ROSHN seen as a major player in Jeddah’s future real estate development
DUBAI: ROSHN, a property company owned by Saudi Arabia’s Public Investment Fund, will be a major player in property development in Jeddah, said Amr Khashoggi, Chairman of Amkest Group.
The deprived neighborhoods of the coastal city of Saudi Arabia are undergoing significant redevelopment after decades of relentless urbanization.
City authorities in Jeddah are cleaning up neighborhoods and squatter settlements where planners say substandard infrastructure, crime and disease are ravaging the lives of around half a million people.
“Today, if you drive through these areas, you will find flat land available for development,” Khashoggi said on the sidelines of the Top CEO event in Dubai.
The area includes the historic city region and the Islamic port of Jeddah, Saudi Arabia’s largest import and export gateway, with 75% of the country’s exports and inbound transhipment passing through it.
“The biggest development cost is the cost of land, and that is already available, so it will be easier for companies like ROSHN to come in and develop high-quality housing and commercial investment,” he said. declared.
ROSHN on Monday announced a new development in northern Jeddah at a strategically located site that provides its population with good access to the city via major roads and the public transport network.
The new project – called ALAROUS – like other ROSHN communities, is designed to provide a modern and open lifestyle, while preserving the Kingdom’s rich heritage and local urban designs, the company said in a statement.
The new community will span approximately 4 million square meters and offer over 18,000,000 residential units designed to suit all segments of society. It has a range of integrated amenities that provide a high quality and fulfilling lifestyle for its residents, including parks, walkways, cycle paths, restaurants, cafes, schools and mosques.
ALAROUS is ROSHN’s second community and is part of a larger strategy to develop modern and vibrant neighborhoods in four regions and nine cities in the Kingdom of Saudi Arabia.
Jeddah is also seeing other major developments in the center of the city, led by Jeddah Central Development Company, including the coastal part known as the Jeddah Waterfront. The region recently hosted Formula 1, the highest class of international motor racing.
“It will be a good place to entertain people,” he said.
The rebirth of the city led to a sharp increase in demand for real estate and led to an increase in prices.
“The demand is there, but the question is whether people can afford it or not,” Khashoggi said.
Today, banks are helping by making mortgages more accessible than before, which will help bridge the gap.
“We are in the construction materials sector and we see that the demand is increasing; many entrepreneurs got jobs,” he said.
For Khashoggi, the challenge today for the construction sector is not to find new projects; the challenge is to find enough manpower.
There is a labor shortage; many went home during COVID-19 and never returned.
The Amkest Group was founded by Amr Khashoggi in 1983, investing in the landscaping, information technology, transport, telecommunications and building materials sectors.