Sabah Barakat, a senior executive at Saudi Arabia’s Public Investment Fund (PIF), has been appointed Acting Chief Executive of New Murabba, according to the developer’s website. He replaces Michael Dyke, the British executive who had led the project since January 2024.

Barakat is also the Acting Group Chief Executive of ROSHN Group, another PIF-backed property developer. It was not immediately clear whether Dyke would remain with New Murabba in another capacity.

New Murabba said in a statement that its operations, partnerships and strategic direction remained in place despite the leadership change. The developer did not provide further details on the circumstances surrounding Dyke’s departure.

The management shake-up comes as Saudi Arabia’s sovereign wealth fund tightens spending across its vast portfolio of investments and reviews the timelines of several projects launched under Crown Prince Mohammed bin Salman’s “Vision 2030” economic transformation programme.

New Murabba is among the Kingdom’s most ambitious urban developments. Planned for central Riyadh, the project is designed to create a new downtown district covering around 14 square kilometres, with residential neighbourhoods, offices, cultural and innovation centres, hotels, retail space and green areas.

The development is expected to contain 18 communities eventually and accommodate more than 400,000 people. Its centrepiece is the Mukaab, a proposed 400-metre-high cube-shaped structure designed to house residences, hotels, entertainment venues and commercial facilities.

When New Murabba was announced in 2023, the development was targeted for completion by 2030. That deadline has since been pushed back to 2040, reflecting a broader recalibration of Saudi Arabia’s giga-project ambitions.

Property consultancy Knight Frank estimates the project’s cost at approximately USD 50 billion. Its scale illustrates the extraordinary investment Saudi Arabia has committed to transforming Riyadh and diversifying the economy beyond oil.

But the financial environment has become more challenging. Lower-than-expected oil prices and higher spending pressures have constrained government finances, while the Kingdom has increasingly focused on directing capital towards projects with clearer economic returns.

The PIF’s 2026-2030 strategy, released in April, reflected that shift, with several previously announced projects either omitted, delayed or substantially scaled back.

The sovereign wealth fund has been central to the “Vision 2030” strategy, deploying hundreds of billions of dollars into tourism, property, technology, entertainment, infrastructure and other sectors intended to create new sources of economic growth and employment.

However, the sheer number and scale of projects have raised questions over whether Saudi Arabia can deliver them simultaneously without putting excessive pressure on public finances.

Sources previously told AGBI that PIF had ordered minimum spending reductions of 20% across its portfolio in 2025. The measures affected more than 100 companies and contributed to project delays and job cuts.

New Murabba has already faced signs of a more cautious approach. Reuters reported in January that construction work on the Mukaab had been suspended, although development of the surrounding New Murabba district was continuing.

The change in leadership therefore comes at a critical point for the project. While the broader development remains part of Riyadh’s plans, the altered timeline and questions around the Mukaab underline the shift from the rapid expansion phase of “Vision 2030” to a greater emphasis on execution and capital discipline.

The appointment of Barakat could also strengthen coordination between New Murabba and other PIF-backed property developments. His concurrent role at ROSHN gives him experience across Saudi Arabia’s state-backed real estate sector at a time when the fund is attempting to rationalise its property portfolio.

The Kingdom is nevertheless continuing to develop its property market and attract foreign capital. In June, Saudi Arabia began accepting applications from non-Saudis to purchase property after the cabinet approved new ownership rules. New Murabba was included among the areas where foreign ownership would be permitted.

That policy could create an additional source of demand for projects such as New Murabba as Saudi Arabia seeks to develop a deeper property market and attract international investors.

For Riyadh, the challenge is now to ensure that its flagship developments deliver economic value without the spending overruns and delays that have become increasingly associated with some of the Kingdom’s mega-projects.

New Murabba’s longer timetable suggests that Saudi Arabia is prepared to take more time to achieve that balance.

The appointment of a senior PIF executive at the helm signals that the project remains strategically important, but its next phase is likely to be defined less by speed and spectacle and more by capital discipline, execution and measurable returns.

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Last month, it was reported that the Saudi housing programme Sakani has over 500 housing units under construction. The housing units in Saudi Arabia are being developed in partnership with the private sector.

The units are being built in the suburb of Khayala, They include 290 villas and townhouses with prices starting from $233,289 for a 258 sqm area.

The Kingdom of Saudi Arabia’s real estate price index increased by 0.4 percent during the second quarter of 2021, according to statistics issued by the General Authority for Statistics. The Kingdom also recorded a 0.8 percent increase in residential real estate prices. However, the prices of commercial and agricultural properties declined by 0.5 percent and 0.2 percent respectively.

Last month, the Kingdom’s central bank SAMA revealed that mortgage lending increased by 27 percent this year through May, as interest rates decreased to between 1 percent and 4.9 percent. Residential real estate financing contracts offered to individuals by local banks reached 133,006 through May, with a value of SR69.5 billion.

In this regard, Riyadh-based Menassat Reality CEO Khaled Almobid told the media, “There is great competition between banks and real estate finance companies to obtain a greater share of the housing demand, after government support and joint financing programs with the Real Estate Development Fund (REDF), which led to an increase in the volume of lending for home purchases.”

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This partnership is expected to lead to a faster development process for construction, sales and letting, and individual homeownership. The collaboration between the two will also expedite the development of affordable, sustainable, and quality, quick-to-market residential housing in the Kingdom using various smart technologies that are applicable to construction.

Khaled Zaidan, a managing partner of Watheeq Proptech VC Fund told the media, “We are dedicated to investing in technologies that are reshaping traditional real estate assets while improving the quality of life for homeowners. Technology can decrease the cost and time of construction, increase the quality of residential housing, and stimulate eco-friendly lifestyles. We believe that top-notch entrepreneurs are the growth engine behind every prosperous economy”

Additionally, this fund is also Shariah-compliant and is the first of its kind in the region and is licensed by Saudi Arabia’s Capital Market Authority. This partnership will also support the government’s commitment to supply 1.5 million homes as part of Vision 2030.

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According to the report, nearly 48 percent of the demand is expected to be generated in the capital city of Riyadh. The report further reveals that during the forecasted period, around 101,000 residential units are expected to be introduced into the kingdom by the state. Around 71 percent will be supplied by the Ministry of Municipal Rural Affairs & Housing projects.

Imad Damrah, Managing Director at Colliers Saudi Arabia told the media, “Driven by factors including growing considerations towards family planning and general cost of living-to-affordability dynamics, a major demand driver for new households is the gradual decrease in average household size. As the total number of households increase across the three major cities, average household size is expected to decrease from 5.8 to 5.3 by 2030.”

The Kingdom real estate price index increased by 0.4 percent during the second quarter of 2021, according to statistics issued by the General Authority for Statistics. The Kingdom also recorded a 0.8 percent increase in residential real estate prices. However, the prices of commercial and agricultural properties declined by 0.5 percent and 0.2 percent respectively.

According to a Knight Frank report, Saudi Vision 2030 has led to new projects in real estate and infrastructure worth $1 trillion.

The post Saudi cities will need 1 mn new residential units by 2030 appeared first on International Finance.

Last month, the Kingdom’s central bank SAMA revealed that mortgage lending increased by 27 percent this year through May, as interest rates decreased to between 1 percent and 4.9 percent. Residential real estate financing contracts offered to individuals by local banks reached 133,006 through May, with a value of SR69.5 billion.

In this regard, Riyadh-based Menassat Reality Co. CEO Khaled Almobid told the media, “There is great competition between banks and real estate finance companies to obtain a greater share of the housing demand, after government support and joint financing programs with the Real Estate Development Fund (REDF), which led to an increase in the volume of lending for home purchases.”

Last month, it was further revealed by the Housing Data and Observatory Center that the supply of new housing units in Saudi Arabia surged in the first quarter. This is mainly due to the government’s Sakani and Wafi programmes. New housing supply surged 29 percent year on year in the first three months of 2021 and by 0.6 percent from the previous quarter.

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Last month, it was reported that around 140,000 new Saudi families will be able to own their first home this year through the Sakani programme. Some 644,000 families in total will have benefited from different types of assistance under the scheme by the end of 2021, according to Real Estate Development Fund (REDF) CEO Mansour bin Madi.

Last month, it was also reported that the Kingdom is set to digitalise the real estate transactions. A new digital platform is being designed by the Kingdom that will allow properties to be bought and sold in the Kingdom, according to Saudi Minister of Justice, Walid Al Samaani.

He further revealed that around 10 million real estate ownership documents out of an estimated 100 million had already been digitised as part of the process. The digitalisation of the real estate sector is in line with the Kingdom’s policy to diversify its economy and reduce its dependency on oil.

The Kingdom of Saudi Arabia is planning to attract $420 billion worth of foreign investments in infrastructure and transportation, according to Saudi Investment Minister Khalid Al-Falih. The Kingdom plans to attract the investment over the period of a decade.

He told the media, “Saudi Arabia is opening up multiple new industries as an integral part of the Vision 2030 transformation, including clean energy, mining, mobility and logistics, tourism and quality of life, ICT, healthcare and life sciences & biotech.”

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He further revealed that around 10 million real estate ownership documents out of an estimated 100 million had already been digitised as part of the process. The digitalisation of the real estate sector is in line with the Kingdom’s policy to diversify its economy and reduce its dependency on oil.

It is also reported that Saudi Arabia-based real estate developer Dar Al Arkan has announced the launch of a new prime real estate development in the heart of Makkah. The upcoming project, which is being called ‘Dar Al Mashaer’, is a seven-tower development, covering 6,300 square meters of two, three and four-bedroom apartments, six penthouses and a private swimming pool.

In this regard, Chairman of Dar Al Arkan Yousef Al Shalash told the media, “The launch of Dar Al Mashaer offers an exclusive investment opportunity and the fulfillment of a dream for every Saudi to own a property in Islam’s holiest city.”

Last month, it was reported that the Real Estate Consultant application and platform of the Saudi Real Estate Development Fund (REDF) provided services to more than 1 million beneficiaries since its launch in 2018.

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With regard to the launch of the Riyadh community, David Grover, group chief executive officer at Roshn, told the media, “The announcement of the Riyadh community represents the initial step in the realisation of our vision to become the most trusted community developer in Saudi Arabia. We are deeply committed to contributing to Vision 2030’s plans to increase the rate of home ownership in the country to 70 percent, whilst delivering high-quality homes and excellent amenities to the Saudi people.”

Roshn was set up by Saudi Arabia’s Public Investment Fund (PIF) earlier this year to develop world-class integrated urban communities across the kingdom. Through its projects, Roshn is expected to contribute to the growth of the domestic housing market and also help localise global best practices to raise standards of living.

It is reported that Saudi Arabia-based contractor Rezaik Abdallah Al-Gedrawy & Co has been chosen for the Phase 1 development of the 4,000 homes in the Riyadh community. Roshn has also inked contracts with Zuheir Ahmad Zahran and Company, Al Akaria Hanmi, Posco E&C, AWJ International and C1 Company Building, who will be involved in the developmental works in the project.

The post Saudi developer Roshn announces flagship Riyadh community appeared first on International Finance.

The sukuk received significant interest from investors across the Middle East, Europe, and Asia. The fund raised from the issue of the dollar-denominated sukuk will support Dar Al Arkan’s ongoing projects.

This brings Dar Al Arkan’s total sukuk value listed on Nasdaq Dubai to $1.6 billion. Reportedly, this is the real estate developer’s 10th issue since 2007.

Yousef Bin Abdullah Al Shalash, chairman of Dar Al Arkan told the media, “With over $1.5 billion of subscriptions, our latest sukuk issuance was very well received by the market. It is a testament to our strong relationship with the global debt capital markets and a big vote of confidence from investors in our stewardship of their capital.”

He added, “The funds raised provide us with the capital to dynamically invest in our business activities across Saudi Arabia as we see the market conditions improving and prepare for the next upcycle. As the region’s international exchange, Nasdaq Dubai provides our sukuk with high visibility to regional and international investors as well as an efficient listing platform regulated to international standards.”

Earlier this year, Dar Al Arkan, which is also Saudi Arabia’s largest public listed developer, redeemed its $400 million sukuk after maturity in the month of May 2019. The sukuk was listed on Nasdaq Dubai and the Irish Stock Exchange.

The developer reported a 92 percent drop in its profit year-on-year in the first quarter of 2019.

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