Arada to open first overseas office in Riyadh as it expands operations in Saudi Arabia

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The first phase of the Central Hub, the UAE’s newest leisure and entertainment destination, which has been designed by Zaha Hadid Architects, will open in September this year. (Photo: Supplied)
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Nest has already witnessed significant success since its launch in March, selling 420 units. (Photo: Supplied)
Updated 06 April 2019
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Arada to open first overseas office in Riyadh as it expands operations in Saudi Arabia

  • UAE-based developer to launch sales office by end of June
  • Move follows sale of more than 250 homes to Saudi investors

SHARJAH: Arada has announced plans to open its first overseas office, which will be based in the Saudi capital, Riyadh. The UAE developer made the announcement at Cityscape Jeddah, the Kingdom of Saudi Arabia’s largest real estate exhibition, which marked Arada’s entry into the country.  

Based in the centre of Riyadh, the Arada office will incorporate a sales suite showcasing the company’s two Sharjah-based lifestyle communities, Aljada and Nasma Residences, allowing potential buyers to ‘walk through’ the developments using next-generation virtual reality technology. The office is scheduled to open before the end of June. 

Founded in 2016 by two of the Gulf’s most respected businessmen, HRH Prince Khaled bin Alwaleed bin Talal and HE Sheikh Sultan bin Ahmed Al Qasimi, Arada has quickly established itself as one of the UAE’s most exciting and progressive developers. The company has sold over 2,600 units in Sharjah, a rapidly growing property market that has benefited from recent moves to allow all nationalities to purchase homes in the Emirate, as well as a stable and well-regulated real estate environment. Investor interest from Saudi Arabia has already proved strong, with over 250 units purchased by buyers from the Kingdom over a two-year period. 

HRH Prince Khaled bin Alwaleed bin Talal, Vice Chairman of Arada, said: “It is a source of considerable pride that Arada’s first overseas office will be in the Kingdom of Saudi Arabia, a country that has exceptionally close ties to our home market in the United Arab Emirates. As the capital of the Arab world’s largest economy, Riyadh is the perfect location for us to showcase our projects to a wide range of investors.” 

Arada’s decision to launch a permanent presence in Riyadh is part of a 2019 expansion strategy, which will also see the opening of an office in Abu Dhabi the first half of this year, as well as extending its marketing reach to the rest of the Gulf and South Asia. Arada has also earmarked Saudi Arabia as a potential destination in which to develop the smart and sustainable communities that it is already building in the UAE in the medium term. 

Arada is currently taking part in Cityscape Jeddah, which is being held between 5-7 April at the Jeddah Centre for Forums and Events, and which is bringing together a host of top Saudi and international developers. During the event, Arada is highlighting the recent launch of Nest, a student housing complex that enables individual real estate investors to purchase directly in this lucrative asset class for the first time in the Gulf. By offering guaranteed return on investment of 10% annually for a five-year period, Nest has already witnessed significant success since its launch in March, selling 420 units. 

Nest is located within Aljada, a master-planned destination with a sales value of SR24.5 billion that is set to transform the future of Sharjah. Aljada was unveiled by HH Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, during an exclusive ceremony in September 2017. Construction on Aljada has already begun, with the first homes scheduled to be handed over by the end of this year. The first phase of the Central Hub, the UAE’s newest leisure and entertainment destination, which has been designed by Zaha Hadid Architects, will open in September this year. 

Arada’s first project, Nasma Residences, was launched in March 2017 and rapidly became Sharjah’s fastest-selling community when its first phase sold out in less than a month. Featuring landscaped parks, two retail centres and a GEMS international school, Nasma Residences sets a new standard for Sharjah communities. Construction on Nasma Residences began last year, and Arada is currently in the process of handing over its first homes in the project. The entire community will be completed by June 2020. 

 


Ma’aden acquisition supports Vision 2030

Updated 24 April 2019
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Ma’aden acquisition supports Vision 2030

The acquisition of an African fertilizer distribution company by Ma’aden, the largest Saudi mining company, will advance Ma’aden’s Strategy 2025, which includes plans to expand operations in the Kingdom and grow sales globally. The acquisition will also support Saudi Arabia’s Vision 2030, which seeks to diversify the economy, increase non-oil exports, boost the Kingdom’s non-oil GDP, and reinforce the mining sector as the third pillar of Saudi industry, after oil and gas and petrochemicals. 

Ma’aden will make its first international acquisition with the purchase of the Mauritius-based Meridian Group, which is due to be completed by September for an undisclosed fee.

The publicly-listed Saudi mining company will acquire an 85 percent stake in the company in an all-cash deal that will provide one of the Middle East’s largest phosphate producers with 3,000 staff and a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe and Zambia. Phosphate is used to produce fertilizer that is essential in replacing the phosphorous mineral that is removed from soil when agricultural crops are harvested. 

“This acquisition marks a very important step in Ma’aden’s strategy to build global distribution channels for our fertilizer products,” said Darren Davis, president and chief executive of Ma’aden. “As we continue to build one of the largest producers and exporters of phosphate fertilizers in the world, ensuring an efficient route to key growth markets is critical to our success.” 

Agriculture forms a significant portion of the economies of all African countries. As a sector, it can therefore contribute to major continental priorities, such as eradicating poverty and hunger. The agri industry can also boost intra-Africa trade and investments, rapid industrialization and economic diversification, sustainable resource and environmental management, and create jobs, human security and shared prosperity.

The Southeast African market, like most of the African continent of 1 billion people, is experiencing increased demand for phosphate fertilizers which industry analysts expect to continue growing by 5 percent annually over the next decade, fueled by population growth and increasing education in the use of fertilizers.

“Ma’aden is acquiring unparalleled access to complementary distribution, blending and product-development capabilities in this fast-growth region,” said Hassan Al-Ali, Ma’aden’s senior vice president for phosphate. “This transaction will provide us with logistics advantages in Southeast Africa, and greater knowledge of on-the-ground customer requirements, both of which will be instrumental in better serving our customers.”

The Saudi global mining giant will secure the remaining 15 percent of Meridian’s equity over four years on agreed terms linked to the performance of the African company, which distributes approximately half-a-million tons of fertilizer through its network of granulation and blending plants, warehousing complexes and port facilities. 

HSBC acted as Ma’aden’s financial adviser on the deal and Baker McKenzie was the Saudi company’s legal adviser for this acquisition.