Aljada Aloula Real Estate Development Company announced a significant strategic step by appointing the developer of a massive infrastructure project on a plot of land spanning approximately 3.6 million square meters in Al-Dilam Governorate, located south of the Saudi capital, Riyadh. This development follows the company's signing of a development agreement with Aljada Industrial Real Estate Fund, paving the way for the establishment of an integrated industrial city that will serve the Kingdom's economic development goals.
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), the development fee is SAR 7.5 per square meter, equivalent to 8% of the total actual project costs, with an estimated value of SAR 27.35 million. This project represents a significant addition to the company's portfolio and reflects market confidence in its ability to execute major infrastructure projects.
General context and project objectives
This project falls within the broader efforts of the Kingdom of Saudi Arabia to achieve the goals of Vision 2030, which aims to diversify national income sources and reduce dependence on oil. Developing industrial cities and logistics services is a key pillar of the National Industrial Development and Logistics Program (NIDLP), one of the Vision's most important programs. These projects aim to create an attractive investment environment capable of attracting local and foreign capital, localizing industries, and enhancing local content.
Contract scope and main tasks
The scope of the contract includes a range of vital tasks to ensure the project is implemented according to the highest standards and approved plans, and includes the following responsibilities:
- Preparing the comprehensive master plan for project development and directly supervising the preparation of the industrial city's master plan.
- Obtaining all necessary licenses and regulatory approvals from the relevant government authorities.
- Selecting and appointing the main contractor or group of contractors to carry out the infrastructure works.
- Take on the task of marketing the project to attract investors and industrial companies to the new city.
Importance and expected impact
The project is expected to have a multifaceted positive impact. Locally, it will contribute to creating hundreds of direct and indirect job opportunities for residents of Al-Dilam Governorate and surrounding areas, while also boosting local economic activity and increasing the value of real estate assets in the region. Nationally, the project represents a further step towards strengthening the Kingdom's position as a leading regional industrial and logistics hub, supporting local supply chains and reducing reliance on imports.
Timing and financial impact
The company clarified in its statement that it was keen to disclose the signing of the contract, despite the fact that its final duration has not yet been determined, because the necessary regulatory permits to commence implementation have not yet been finalized. The project's implementation period will be precisely defined in a contract addendum to be signed later, after the master plan is approved by the relevant authorities. Al-Jada Al-Oula expects the project's positive financial impact to begin appearing in its financial results starting in 2027. It is worth noting that the company owns units in the Al-Jada Industrial Real Estate Fund, representing 5.25% of the fund's capital, and that its Vice Chairman of the Board, Mr. Nader Al-Omari, is an investor in the same fund.
