Hamad Mohammed Bin Saeedan Real Estate Company, a leading real estate developer in Saudi Arabia, announced the signing of a strategic contract to manage and develop a new commercial real estate project in the Tuwaiq district, west of Riyadh. According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), the initial value of the contract is approximately SAR 16.97 million, and the project spans a total area exceeding 16,000 square meters.
This project comes within the context of the comprehensive urban and economic renaissance that Riyadh is witnessing, which is a key pillar in achieving the goals of Saudi Vision 2030. The Vision aims to transform the capital into a global economic and tourist hub, requiring a significant expansion in infrastructure, commercial projects, and residential developments to meet growing demand and improve the quality of life for residents. High-quality real estate projects like this one are a fundamental pillar in supporting this strategic direction.
The project is particularly significant due to its location in the Tuwaiq district, one of Riyadh's largest and fastest-growing neighborhoods in terms of population density and urban expansion. Situated in the western part of the capital, the district is experiencing high demand, creating a pressing need for more services and commercial facilities to serve its residents. The new project is expected to contribute to meeting some of this demand and enhance the district's appeal as a comprehensive residential and commercial destination.
According to the contract details, Hamad Bin Saeedan Real Estate Company will be responsible for managing all phases of the project's development over a period of 18 months. In return for these services, the company will receive a management fee of 10% of the total development costs, excluding VAT. The company stated that the other party to the contract is Mr. Hamad Mohammed Bin Saeedan, who is considered a related party, a transparent disclosure procedure in accordance with the Capital Market Authority's regulations.
Economically, this contract is expected to positively impact the company's financial performance and future business results, coinciding with the project's commencement and the influx of revenue. More broadly, the project represents a valuable addition to Riyadh's real estate sector, underscoring the confidence of major developers in the strength and sustainability of the Saudi real estate market. It also contributes to stimulating local economic activity by creating direct and indirect employment opportunities during the construction and operation phases, and enhances the investment value of properties in the surrounding area.
