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Saudi firms sign $346m residential project deal

23 July 2024

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Saudi Arabia-based firms Sumou Real Estate Company and Jubail & Yanbu Industrial Cities Services Company (Jabeen) have signed an estimated SR1.3bn ($346m) agreement for the development of a residential project in the kingdom.

The deal covers the design and construction of over 1,104 residential units in Yanbu Industrial City and the development of associated infrastructure works for the project.

The contract period is three years from the start of construction.

The agreement follows a deal signed by Jabeen for a similar project in Saudi Arabia's Jubail Industrial City last year.

In November, MEED reported that Jabeen had signed an agreement worth SR1.2bn with private real estate developer Retal Urban Development Company for a project that includes the design and construction of 897 residential units and the development of associated infrastructure works. 

The duration of this contract is 40 months from the start of Jabeen's land handover to Retal.

GlobalData expects the construction industry in Saudi Arabia to grow by 4.6% in real terms in 2024, supported by investments in energy, tourism and industrial projects.

As part of the National Investment Strategy, the government aims to improve the investment climate and increase net foreign direct investment flows in line with its aim of increasing the number of industrial establishments in the kingdom from 8,800 in 2019 to 36,000 in 2035.

The residential sector is expected to grow by 4.2% in real terms in 2024, before recording an annual average growth rate of 5.9% in 2025-28. The industry will be supported by government initiatives to provide affordable housing as part of its aim to increase homeownership from 62% in 2020 to 70% by 2030.

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Yasir Iqbal

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