27 Aug 2024
RIYADH: Two major state-owned and publicly listed companies have formed a partnership to oversee the development and management of key markets in downtown Riyadh. This collaboration marks a significant step in the city’s ongoing transformation.
According to an announcement on Tadawul, Riyadh Development Co. and Riyadh Holding Co. have reached an agreement to establish a new entity. This entity will take ownership and operational control of assets within the historic Qasr Al-Hukm area.
With assets valued at SR1.52 billion ($405 million), this collaboration is poised to leverage the combined expertise of the companies in real estate development and management. It promises to usher in a new wave of innovation and growth in the heart of the Saudi capital.
The newly formed company will focus on properties in central Riyadh, including key commercial hubs such as Al-Taamir Markets, Al-Muaiqiliyah Center, and Al-Dira Markets.
This focus on key marketplaces highlights the strategic significance of the Qasr Al-Hukm area, emphasizing its role not only as a historic site but also as a vibrant center for commerce and development within Riyadh.
Riyadh Development Co. will contribute 46.34 percent to the joint venture, primarily through its substantial stake in the Al-Taamir Wholesale Commercial Center. Riyadh Holding Co. will provide the remaining 53.66 percent, contributing assets from the Al-Muaiqiliyah Commercial Center and Al-Dira Market.
This collaboration highlights both entities’ commitment to optimizing their real estate portfolios and enhancing Riyadh’s commercial landscape. It is a key component of Riyadh Development Co.’s broader strategy to form alliances that enhance financial sustainability and streamline operational efficiency in the real estate sector.
By combining their assets and expertise, the companies aim to unlock new investment opportunities, improve returns on their portfolios, and deliver greater value to their shareholders. This agreement aligns seamlessly with the Kingdom’s Vision 2030, which seeks to elevate Riyadh into a leading global city by integrating modernization efforts with the preservation of cultural heritage.
The Qasr Al-Hukm area, with its deep historical significance, stands as a testament to Saudi Arabia’s commitment to harmonizing its rich heritage with its ambitious future. While the full financial implications of this partnership will become clear once regulatory approvals are finalized, the venture is already seen as a significant step toward maximizing shareholder value and bolstering Riyadh’s status as a prominent global city.
The emphasis on real estate development and management in this culturally significant area underscores the importance of balancing progress with preservation as the Kingdom moves forward with its Vision 2030 goals.