Al Akaria CEO says Al Wedyan project is now ‘top priority’

Saudi Real Estate Company (Al Akaria) has set the execution of Al Wedyan project as its ‘top priority’, CEO Mamdouh Al Sharhan told Argaam in an exclusive on Sunday. 

“The developer has completed groundworks, and also finalized about 15 to 20 percent of the related infrastructure services at Al Wedyan,” Al Sharhan said, expecting to launch the central park at Al Wedyan City by 2019-end.

Other projects are being prioritized according to expected returns and market demand, he added.

“For instance, Al Akaria prioritizes completion of health real estate service developments amid high market demand and attractive returns, compared to other residential projects due to market oversupply,” Al Sharhan noted.

“On the other hand, Alinma-Al Akaria Fund for real estate development will not only develop hotels, but also mixed-use projects, administrative offices, apartments and retail shops,” he further added.

Al Akaria is maintaining an average revenue from leasing contracts, despite a slight volatility in leasing returns over the past period.

The company was pressured by expansions, which usually weigh on profitability - including the set-up of new affiliates and development of mega projects.

“The projects prioritized by Al Akaria are likely to pay off soon,” Al Sharhan concluded.