Press Release: Riyadh Development Company Signs Memorandum of Understanding with Arriyadh Holding to Establish a Joint Venture to Develop Dirah District Markets

The MoU aims to bolster Riyadh’s economic and commercial sectors and enhance the destination experience for the district.

Riyadh, May 22, 2023: Riyadh Development Company (ARDCO) has announced the signing of a Memorandum of Understanding (MoU) with Arriyadh Holding Company. This partnership aims to establish a leading entity in the real estate development and property management sector in AlDirah District in central Riyadh as well as strengthen cooperation between the two companies towards launching diversified investment and service initiatives in the city to increase quality of service and achieve shareholder aspirations. The MoU is part of ARDCO’s efforts to keep pace with the urban and economic renaissance of both the city and the Kingdom and is consistent with the city’s strategy as well as the Kingdom’s Vision 2030 objectives and aspirations for sustainable development.

The MoU was signed under the auspices of His Highness Prince Faisal bin Abdulaziz bin Ayyaf, Mayor of Riyadh Region and Chairman of both ARDCO and Arriyadh Holding Company. Mr. Jehad bin Abdulrahman Alkadi, CEO of ARDCO, and Eng. Asim bin Muhammad Al-Suhaibani, CEO of Arriyadh Holding Company, both signed the MoU at the Riyadh Region Municipality.

The MoU will allow for the establishment of an entity that will manage assets owned by the two companies, strengthening the partnership between both parties. The assets include AlTameer Wholesale Markets, Al-Moaiqliah Trading Centre, and Dirah Markets, which are some of Qasr AlHukm district’s key properties. The entity will serve as a developer and leading operator of the district’s markets. It aims to benefit from both companies’ experience in the development and management of commercial and service real estate projects. The MoU aims to support in further developing the city center, capitalizing on economies of scale, to improve operational efficiency and create a destination that provides a unified visitor experience and an authentic hub for outstanding business and tourism.

On the occasion of the MoU’s signing, His Highness Prince Faisal bin Ayyaf praised the strategic partnership between the two companies and its role in shedding an important light on Riyadh’s burgeoning urban and economic growth. This will be achieved through projects that have an impact on the social development of both the city and the Kingdom and are in line with the objectives of Riyadh’s strategy and its endeavors to transform the Saudi capital into one of the 10 largest city economies in the world. Capitalizing on the competitive advantages of Riyadh, as the largest purchasing power in the Middle East, will help further these objectives.

In turn, Mr. Alkadi, CEO of ARDCO, shared that the MoU with Arriyadh Holding comes in accordance with ARDCO’s strategy and direction to establish supportive partnerships that enable it to achieve financial sustainability and further raise company revenues. The MoU also aims to create investment opportunities that help improve the return on the company’s asset portfolio and enter quality partnerships that aim to maximize shareholder return by focusing on real estate development and development management. He also noted that the MoU meets the investment aspirations of the two companies and leads to important gains in market share growth in retail sectors and traditional markets. The project will adopt a collaborative approach to achieving full alignment with the national strategies of various government ministries and agencies.

Eng. AlSuhaibani, CEO of Arriyadh Holding, welcomed the MoU, saying it will invest in financial, human, and logistical capabilities, built upon the expertise that characterizes the two companies. He added that he believes that unifying the efforts and investments of both companies into the city center will reap numerous benefits for both companies, their investors, consumers, visitors, and the local area collectively. This step will also contribute to raising operational efficiency and activating marketing and expansion plans. It also aims to increase the scope of leasing, attracting new investors to the city center, and enhancing its destination experience, in addition to the expected profit gains that support financial sustainability and growth for the two companies.

The new entity’s asset portfolio will include 3 commercial centers that comprise of more than 140,000 m2 of retail space, over 88,000 m2 of office space, and residential areas of over 17,000 m2, as well as upwards of 3,500 parking spots. The total value of the assets is SAR 1.2 Bn to 1.4 Bn.

It is important to note that the MoU is subject to the attainment of necessary approvals from both parties as well as legislative authorities. The two parties will cooperate in exchanging information and supporting aspects of training highly qualified Saudi talent to manage the entity, as well as many other areas of collaboration in order to enhance the project value and to establish it as a key contributor to the development of the Saudi capital’s city center, strengthening the role of ARDCO as one of Riyadh’s leading enablers.

Riyadh Development Company was established by Royal Decree No. (M/2) in 1994 as a joint-stock company, mandated with developing the Qasr AlHukm district in central Riyadh. ARDCO has since progressed to become a cornerstone of Riyadh’s real estate development and investment sector, through establishing, operating, and managing key projects in the public good services sector. ARDCO has built and currently manages several key service projects, operated by more than 150 highly qualified Saudis, leased to over 2,000 tenants, and serving more than 20 million people.


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