In 2012, ALJ Land was formed to develop and improve the head company's infrastructure in terms of facilities that support the automotive industry; in total, we invested over SAR2 billion. In 2013, we purchased plots of land and worked on developing them for two projects: J1 and a building with 21 apartments. We are now starting the third project, a development that will provide genuine community life. Saudi Arabia grew by 1 million people in 2017-2018, and we will see an even greater expansion. In the last few years, living spaces in Saudi have evolved in line with customs and culture. Our definition of community is a habitat that provides the inhabitants with excellent lifestyle facilities and offers basic needs in a secure environment. The new generation of Saudis wants a living community that integrates all these diverse components, and now that regulations have changed, we have much greater freedom to develop the projects customers are asking for. There is a strong demand for service-oriented developments, which was not the case in the past. Within Saudi, we have the three major cities that still require a great deal of development, and now the government is placing efforts on accelerating economic activity in secondary cities as well.
Nov. 18, 2019
Managing Director, Abdul Latif Jameel Land
Haitham Hussain Hakeem
Co-Founder & CEO, Rakal Real Estate Company
Rakal Real Estate Company is one of the leading companies in the field of real estate investment, focusing on residential, commercial, and tourism in Saudi Arabia. The company was established in 2013 in alignment with Vision 2030 and operates accordingly to achieve the strategies and goals in the real estate sector. Rakal has diversified investment in various fields, with the largest share in real estate development, aimed at commercial and leisure activities. Throughout the years, the investment portfolio has expanded and includes operation, marketing, and management of properties, and currently the company manages a number of commercial and residential projects inside and outside Riyadh. Among the most important projects of Rakal Real Estate is the Rakal Plaza Mall, as well as the marketing of the Carolina Palms residential compound. Projects outside Riyadh include Al Maha Mall in Abha. Rakal Real Estate is owned by a number of partners that have extensive experience in the field of investment, such as the well-known Tharawat Holding. These relationships give us the confidence to use our expertise as needed. This is in addition to the great support we obtained, the investment methods we use, and the leadership guidance we always receive from the owners of Rakal Real Estate. We provide our services based on extensive experience.
Mowaffaq Al Hashimi
Executive Chairman, Saqifat al Safa
We completed the Darb Al Haramain project, which involved infrastructure construction and land development, and then handed it over to the municipality. Hopefully we will start selling the land by October 2019. We are not undergoing any major real estate investment projects at present. We are moving toward facilitating purpose-built projects. We can facilitate an entire project, which we have done before with specialized malls. That is a concept that we marketed and found to be successful. We are also increasing our property management portfolio, as many have started to realize the importance of professional property management. Every week, we get two or three requests to manage property. The market will learn through evolution, but I seek to increase the pace. The property management side of the business now covers about 40% of our business at least. I am shooting for 50/50 in terms of annual revenue, but not in volume. We are taking a more cautious role at the moment, as there is a great deal of suspense. The problem is that for many years we have been accustomed to having the government do everything, always carrying the burden. The relationship between the government and the private sector is changing, and we are adapting and looking for opportunities within this change.