In a move reflecting its strategic direction to strengthen its presence in the Saudi real estate market, Asas Makin Real Estate Development and Investment Company announced today the signing of a comprehensive agreement with Wathiq Marketing Company for the marketing, sale, and leasing of its real estate units. This step comes as part of the company's efforts to enhance the efficiency of its operational processes and leverage specialized expertise to ensure its projects are marketed according to the highest professional standards.
Contract details and financial value
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the agreement primarily aims to manage integrated marketing campaigns, as well as sales and leasing operations for residential and commercial units within the company's projects. The agreement's financial structure is based on a commission system, with the marketing commission amounting to 2.5% of the sale price of each real estate unit (plus VAT).
The company estimated the total expected value of this contract at approximately 10,000,000 Saudi Riyals, noting that the calculation of the actual commission will be based on the sales figures actually achieved, which means that the final value of the contract may vary by increase or decrease based on the volume of sales achieved.
Scope of work and regulatory compliance
The agreement includes a comprehensive package of services that Watheeq Marketing will provide to support Asas Makeen's projects. These services include managing advertising campaigns to enhance the projects' visual identity and increase reach to target customer segments, as well as handling all procedures related to the sale and rental of units. The agreement also emphasizes the necessity of full compliance with real estate advertising regulations and the required licenses issued by the Kingdom's legislative authorities, thus ensuring the transparency and reliability of operations.
The context of real estate growth in the Kingdom
This agreement comes at a time when the real estate sector in Saudi Arabia is experiencing rapid growth, driven by the goals of Vision 2030, which aims to increase homeownership rates among citizens and develop the investment environment. Real estate developers are increasingly separating development operations from marketing and sales, assigning the latter to specialized companies to ensure a focus on construction quality and adherence to timelines, while professional marketing firms handle the distribution of real estate products.
Financial impact and time period
Asas Makin clarified that the contract is for one year, renewable, giving both parties flexibility in performance evaluation and continued partnership. Regarding the financial impact, the company anticipates that the implementation of this agreement will positively affect its financial results during the contract period. It emphasized that the extent of this impact is directly linked to the sales volume achieved through Wathiq Marketing, which will enhance the company's cash flow and support its future expansion plans.
