Property market to see challenging year on expat exodus: Dar Al-Arkan CEO

The Saudi real estate sector is expected to face some challenges in 2018, due to the exit of expats following the Kingdom’s decision to impose expat fees, CNBC Arabia has reported, citing Yousef Al Shelash, chairman of Dar Al Arkan Real Estate Development Co.

Expats leaving Saudi Arabia means many homes will be unoccupied, which may exert pressure on demand in the Kingdom, Al Shelash said.

Meanwhile, Al-Shelash said Dar Al-Arkan reported good figures last year, and is expected to discuss a dividend payment during the next general meeting.

“The company enjoys strong position and is forecast to report better financials in 2018,” he noted.

The proceeds of the company’s $500 million sukuk program are expected to go for developing long term real estate projects locally and overseas, he added.

Also, the initial public offering (IPO) of Dar Al-Arkan Properties is expected to be launched in Q2 or Q3 of 2018. The IPO will also raise strong liquidity for Dar Al-Arkan and enable it to expand in the development of income-generating assets, thanks to the newly-established entity, which will be able to borrow funds, grow, and pay dividends.