Dur Hospitality Company, a Saudi Arabia-listed company, has given Al Murshid Contracting Group an 82.5 million Saudi riyal ($22 million) contract for the development of a luxury residential complex in Riyadh, amid an increase in demand for high-end apartments in the kingdom’s capital.
Dur Hospitality said in a filing to the Saudi stock exchange (Tadawul) on Wednesday that the 18-month contract covers construction, finishing, and electromechanical work on 75 “smart” villas near the northern gate of Riyadh’s diplomatic quarter and close to some of the major government authorities and departments.
“The project’s predicted positive financial benefits will begin in the third quarter of 2023,” the business stated.
Saudi Arabia is developing a strategy to convert Riyadh into a significant global metropolitan economy by 2030.
According to the Royal Commission for Riyadh City, as part of the strategy, the kingdom intends to make the capital one of the top ten city economies in the world by 2030, doubling its population to 15-20 million and increasing the number of tourists to more than 40 million.
According to the Saudi Press Agency, authorities will finalize the Riyadh 2030 development blueprint next year.
Saudi Arabia will complete its Riyadh development strategy next year.
Dur Hospitality, situated in Riyadh and founded in the 1970s, has a market value of 31.5 billion riyals, according to Tadawul data.
Dur Hospitality stated the luxury villas project will be financed by Islamic credit facilities known as Tawarruq, and that building will take place on property owned by the firm on Riyadh’s King Khalid road.
Meanwhile, the Riyadh 2030 strategy will be implemented through 26 sectoral programs, encompassing more than 100 initiatives and 700 pioneer projects across sectors and in various regions of the city, with the goal of making the city one of the most liveable in the world.
Riyadh is the site of several new developments. According to a study published in August by consultant Knight Frank, new initiatives include the $20 billion Diriyah Gate Complex with 20,000 dwelling units, the $17 billion King Salman Park neighborhood with 12,000 apartments, and a $8 billion major entertainment project dubbed Qiddiyah.
Other projects include the $7.8 billion King Abdullah Financial District, the $3.2 billion Mall of Saudi Arabia, which is being constructed by the UAE’s Majid Al Futtaim Group, and The Avenues Mall.