July 2018 | By: Ameer Yousif, Jaffer Al Hamad, Adel Al Banna

New Housing Projects

Eastern Province, KSA

A report that is looking into the business opportunities in the new

housing projects in Eastern Province of Saudi Arabia.

Actionable Market Intelligence Report

With the objective to support the Bahraini private sector to expand
and grow in the region, Tamkeen is developing a series of
actionable market intelligence reports on various areas and
sectors in the Saudi Market.

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 TABLE OF CONTENTS

1. INTRODUCTION.................................................................................................................. 2
2. NORTHERN AND SOUTHERN DAMMAM HOUSING PROJECTS ................................... 3
PROJECT BRIEF......................................................................................................... 3
3. AJYAL HOME OWNERSHIP PROJECT ............................................................................. 5
PROJECT BRIEF......................................................................................................... 5
FACILITIES & UTILITIES ............................................................................................. 5
PROJECT TIMELINE .................................................................................................. 6
SUPPORT & CONTACTS ........................................................................................... 6
4. ARAMCO’S JABAL HEIGHTS PROJECT .......................................................................... 7
PROJECT BRIEF......................................................................................................... 7
FACILITIES & UTILITIES ............................................................................................. 7
PROJECT TIMELINE .................................................................................................. 7
5. AL-FURSAN HOUSES ........................................................................................................ 8
PROJECT BRIEF......................................................................................................... 8
FACILITIES & UTILITIES ............................................................................................. 8
SUPPORT & CONTACTS ........................................................................................... 8
6. AL-KHOBAR LAKES .......................................................................................................... 9
PROJECT BRIEF......................................................................................................... 9
FACILITIES & UTILITIES ............................................................................................. 9
PROJECT TIMELINE ................................................................................................ 10
SUPPORT & CONTACTS ......................................................................................... 10
7. CANARY RESIDENTIAL COMMUNITY ............................................................................ 11
PROJECT BRIEF....................................................................................................... 11
FACILITIES & UTILITIES ........................................................................................... 11
SUPPORT & CONTACTS ......................................................................................... 11
8. PROJECTS SUMMARY .................................................................................................... 12
9. RECOMMENDED ECONOMIC ACTIVITIES ..................................................................... 13
10. CHALLENGES .................................................................................................................. 14
11. WAYFORWARD ................................................................................................................ 15

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1. INTRODUCTION

The Eastern Province is the largest province in the kingdom of Saudi Arabia in terms of area. It
constitutes 25% of the kingdom area. It is also the home of Saudi main industries, Oil, Petrochemical,
and Aluminium.

With an area of 672,522 km2, Eastern Province has an international airport, in addition to a regional and
a domestic airport. Its population is around 4.9 million, which equates to 15% of the total population in
the kingdom of Saudi Arabia.

The national population (3.1 million) is growing at a rate of 1.7% and the expat population (1.8 million)
is growing at a much higher rate of 4%. The province industrial growth attracts more Saudi citizens from
other provinces and expat workers to live and work in the region. Both the Saudi government and the
private sector including the mega industrial companies are developing large-scale housing projects to
cater to the growing young population and new arrivals of workers.

These new large-scale projects lead to creating new communities which create opportunities for various
economic sectors to expand or extend their services to the new residents.

The projects can be classified into two categories:

No Type Developer Target Residents

1 Ownership Government Limited income citizens

2 Ownership Large corporates Middle & high-income employees

3 Ownership Private Sector Middle-income citizens

4 Ownership Private Sector High-income citizens

5 Rental Private Sector High-income expats

This report investigates the new housing projects and highlights the insights of the available
opportunities in the form of actionable market intelligence to the Bahraini businesses looking to expand
in the regional largest market across the causeway.

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2. NORTHERN AND SOUTHERN DAMMAM HOUSING
PROJECTS
PROJECT BRIEF

Developed by the Ministry of Housing in partnership with the private sector represented by private real
estate developers and banks. The infrastructure of both projects are completed and the areas handed
over to the developers. Sales of the units started Q4 2017.

Only a highway separates the adjacent projects. Each project is developed by a few real estate
developers and offers various types and sizes of units. As the duration of the construction is estimated
to be 36 months, the area is expected to be occupied only by 2020 or 2021 onwards.

Based on the details released by the Ministry of Housing, both projects are going to handle nearly 9,000
residential units in four types, town Houses, duplex houses, villas, and apartments. Also, many empty
lands in the area of both projects will be handled as another category of housing options that the ministry
provides to Saudi eligible beneficiaries.

7,622 & 16,210

residential units are
going to be delivered
on Northern and
Southern Housing
Projects,
respectively.

F IGURE 1: N ORTHERN
& S OUTHERN D AMMAM
H OUSING P ROJECTS

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 Link
FACILITIES & UTILITIES

Kindergartens/Nurseries
Residential Units

Commercial Centers
Parks/Play Grounds

Security Centers
Cultural Centers
Jame' Mosques

Health Centers

Civil Defences
Post Offices
Developer

Mosques
No Project Project Name

Schools
Company

Town Duplex
Villas Apartments
Houses Houses

Wahet Al- https://sakani.housing.sa/p

1 Northern Dar Al-Bayan 2,952 2 5 9 5 9 1 1 5 1 1 1
Dammam roject/340048
https://sakani.housing.sa/p
2 Northern Madd Dar Al-Ibdaa 728 1 1 1 1
roject/340047
Jasmine https://sakani.housing.sa/p
3 Northern Bwabt Al-Dar 112 1 3 6 4 5 4
Residences roject/283621
https://sakani.housing.sa/p
4 Southern Tilal Al-Ghoroob Al-Ameriah 590 1 3 1 1 3
roject/283622
Tilal Al-Ghoroob https://sakani.housing.sa/p
5 Southern Al-Ameriah 1,899 3 2 9 6 3 3 1 1
Town Houses roject/340045
https://sakani.housing.sa/p
6 Southern Al-Wajha Al-Hakmiah 590 2 2 1 1 1 1 1
roject/283607
https://sakani.housing.sa/p
7 Southern Nesaj Town Retal 768 3 1 9 1 1 1 1 1
roject/340046
Zahran / https://sakani.housing.sa/p
8 Southern Al-Fareeda 4,764 1 3 1 2 3
Masar roject/283623
https://sakani.housing.sa/p
9 Southern Al-Nakheel Mawten 1,797 1 3 1 2 3
roject/283620
https://sakani.housing.sa/p
10 Southern Dammam Hills Al Jubail 50
roject/425832
Sub-total 5,579 50 590 7,263 9 17 45 19 25 1 2 23 2 4 4
Total 13,482 151

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3. AJYAL HOME OWNERSHIP PROJECT

PROJECT BRIEF

Developed by Aramco for its staff as a home-ownership project. The project is located in southern
Dhahran on an area of 10 km 2, it will offer more than 8,500 residential units consisting of a wide range
and sizes of villas and apartments. The project is divided into two phases, the first phase consisting of
around 3,000 residential units completes in 2019, and the second phase of the balance of around 5,500
residential units completes in 2020. The project includes various facilities and utilities such as roads,
shopping mall, restaurants, mosques, schools, etc.

80,000 to live
and work in Ajyal
community.

F IGURE 2: F UTURE P LAN

OF B OTH P HASES OF T HE
P ROJECT

FACILITIES & UTILITIES

1. Shopping Mall: a 240,000 m2.

2. Hotels: Two to three hotels.

3. Gas Station: One.

4. Schools: Under development are 10 Governmental schools, one private school, and one school
for special needs.

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 PROJECT TIMELINE

The following table shows the project phases, time frame, deliverables, and expected occupancy:

PHASE TARGET DATE OCCUPANCY

ONE Q4 – 2019 (Tentative) 20,000

DELIVERABLES (Tentative)

2,700 residential units (2,470 Villas & 230 apartments)

10 Governmental schools
1 private school
1 special needs school
Gas Station & Car Services
Mosques

PHASE TARGET DATE OCCUPANCY

TWO 2020 60,000

DELIVERABLES (Tentative)

4,500 Villas
Community Centers
Shopping Malls
Hotels

SUPPORT & CONTACTS

1. Contact 1: Mohammed Al-Saleh
Mobile: +966 50 111 1930
Email: mohammed.alsaleh.3@aramco.com

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4. ARAMCO’S JABAL HEIGHTS PROJECT
PROJECT BRIEF
Developed by Aramco, and considered an expansion project and addition of the Dhahran Jebel Heights
residences, located in Al-Dhahran and providing 1,556 housing units, including 885 family villas and
671 apartments. All of the residential units are expected to be occupied by mid-2018.

1,556
housing units are
going to be
completed by
mid-2018.

F IGURE 3: J EBEL H EIGHTS

O VERALL P LAN

FACILITIES & UTILITIES

1. Fitness Center: One.

2. Food court: One.

3. Convenience Store: One.

4. Community and recreation facilities: multiple facilities.

PROJECT TIMELINE

The following table shows the project phases, time frame, deliverables, and expected occupancy:

PHASE TARGET DATE OCCUPANCY

ONE Q2 - 2018 Unknown

DELIVERABLES
885 Villas
671 Apartments
New community and recreation facilities (including a convenience store, a food court, and a fitness center)

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5. AL-FURSAN HOUSES
PROJECT BRIEF
Developed by Al-Argan Real Estate Company, the set of houses that include private villas and duplex
houses is also expecting to see “Fursan Center” which should include a group of renowned international
brands.

The housing complex has already been completed, and the shopping center should also complete
within 2018 and provide services to all the traveling cars on the Dammam airport highway with its
strategic location.

623 Private Villas &

Duplex houses on an
area of 468,000 m2.

F IGURE 4: A L -F URSAN
H OUSES & C ENTER

FACILITIES & UTILITIES

1. Shopping centre: One.

2. Mosques: Unknown number.

3. Schools: Unknown number.

SUPPORT & CONTACTS

1. Contact Person: Faisal Al-Dehaim
Mobile: +966 50 526 3279
Responsibility: Fursan Center

2. Contact Person: Mohammed Jom’a

Mobile: +966 54 938 3997
Responsibility: Fursan Houses Sales

3. Contact Name: Abdulrahman Mohammed

Mobile: +966 56 876 5707
Responsibility: Fursan Houses Sales
Email: a.alawai@alargan.com

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6. AL-KHOBAR LAKES
PROJECT BRIEF
Set amongst 4.3 km2 of serene lakes, “Al-Khobar Lakes” private housing project provides over 2,000
private villas, retail and leisure amenities in a gated community. The project has been developed by
UAE-based Emaar Real Estate, but sales and management are expected to gradually move to Al-Oula
Real Estate Company, according to the answers of Emaar call center employees when asked for details
on the project.

Currently, only around 100 villas are ready and occupied. The project is on hold due to the recession in
the real estate sector over the past couple of years. A group of the villas is made commercially available
for high-end restaurants and cafés. The project also caters to a shopping mall and a private school.

It has a competitive edge being in proximity distance from the large-scale Ajyal project of Aramco and
a new large area being prepared for a residential community.

2,000 Private villas

in a gated community
set on 2.6 million m2.

F IGURE 5: A L -K HOBAR L AKES

FACILITIES & UTILITIES

1. Shopping malls: One, with a gross leasable area of 95,000 m2.

2. Mosques: 11 mosques, including a Grand Mosque for Friday Prayers.

3. Educational complexes: Two, for both boys and girls.

4. Shopping centre: One.

5. Community centres: Two, including a fitness center, day care, and restaurants.

6. Healthcare facilities and other amenities.

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 PROJECT TIMELINE

The following table shows the project phases, time frame, deliverables, and expected occupancy:

PHASE TARGET DATE OCCUPANCY

ONE Completed 600

DELIVERABLES
242 detached villas

PHASE TARGET DATE OCCUPANCY

TWO On Hold

DELIVERABLES

SUPPORT & CONTACTS

1. Contact Person: Mohammad Al Mudarra

Mobile: +966 50 604 0446
Responsibility: Sales Office

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7. CANARY RESIDENTIAL COMMUNITY
PROJECT BRIEF
Developed by the real estate division of Rashed Abdulrahman AlRashed & Sons Group, Canary
residential community is considered "high class" choice of housing, and especially the wealthy
expatriates working in Eastern Province. More than a third of the construction of the community is
completed by the time we visited the place (July 2018), and many amenities are almost finished,
including the recreational areas and the multi-purpose hall.

On the other side of the road -as shown in the picture below- many outlets are to be constructed in an
area that is not considered well-serviced and with minimal shopping facilities around, and also to be
managed and owned by AlRashed Group. The surrounding options are limited to the Half Moon Bay
recreational areas that include a minimum number of retail shops in regards to the vast area. Beside
the existing Prince Mohammed Bin Fahad University, many housing complexes and individual houses
are either built or planned to be built which establishes the need and demand for such shopping
destinations.

182 Villas-for-rent
are completed and to
be followed by 212
more in phase 2 and 3.

F IGURE 6: A L -F URSAN
H OUSES & C ENTER

FACILITIES & UTILITIES

1. Shopping centre: One.

2. Health Club: Unknown number.

3. Schools: Unknown number.

SUPPORT & CONTACTS

1. Contact Person: Manar Ayoubi

Mobile: +966 54 537 2226
Email address: manar.ayoubi@alrashed.com
Responsibility: Operations Manager – Real Estate Division

2. Contact Entity: Main office

Mobile: +966 13 859 0895

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8. PROJECTS SUMMARY

No Type Developer Target Residents

1 Ownership Government Limited income citizens

2 Ownership Large corporates Middle & high-income employees

3 Ownership Private Sector Middle-income citizens

4 Ownership Private Sector High-income citizens

5 Rental Private Sector High-income expat

As per the order of the above five main categories into which housing projects are falling, Northern and
Southern Dammam Housing Projects are considered the long-term opportunity that can be studied and
communicated with the Saudi Ministry of Housing or the assigned Developing companies. As per the
above schedule included in the project section, two categories of amenities can be considered probable
opportunities, and they are commercial centers and kindergartens or nurseries. The current number of
planned amenities within both categories are around 40, not to mention that many other projects are
not yet disclosed on the website of the Ministry of Housing which could raise that number.

As the moment when this report was issued, about half of Northern & Southern Dammam housing
projects only are declared. Future revision after 12-18 months is recommended to get updates of new
housing projects, and issue an appendix or alternatively another version of this report.
Many opportunities from the other projects can be studied, both through exploring the internal service
areas or project-attached facilities and through the areas surrounding the projects' perimeters that can
be rented or owned by other parties.

Disregarding the current recession in the real estate sector, it is a wise decision to study the current
opportunities and look for short-term and long-term decisions for many Bahraini companies to enter the
market and reap the most fruitful opportunities to service those housing projects. It is also a wise
decision to plan for providing products and services through contracts with current real estate
developers and start contacting them, especially with housing governmental projects. Some of the
projects (such as xx) contain some available retail spaces in the form of the shopping mall or lands just
outside the project's perimeters, to be used by the residents and also the passing-by cars (such as
Canary). Such new opportunities will be only known through the consistent contacts with the projects’
owners.

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9. RECOMMENDED ECONOMIC ACTIVITIES

Due to the recession of the real estate sector in the Kingdom of Saudi Arabia, the only active large-
scale housing projects are Aramco's two projects. The other smaller, but active projects, are the
residential compounds in and around Khobar.

Ajyal Project
The location of “Ajyal” project, being:

 15 minutes away from the landing point of King Fahad Causeway

 Away from closest city Khobar and services area

Makes it an ideal target for Bahraini businesses to expand their services to the new community. The
business can start immediately with the first batch of 500 houses that will be occupied by end of this
year 2018 and grow naturally with the completion of the more houses over the coming three years.

The residents of the project are middle and high-income Saudi staff of Aramco and the total residents
at the end of the project is expected to reach around 80,000 people in addition to the current and future
residents of the areas closed.

This new and growing community will require many services, following is a list of recommended
economic activities to benefit from this opportunity:

 Interior design service,

 The entire range of furnishing products and services,
 The entire range of retail shops,
 Personal services,
 The entire range of private schools, from nurseries to high schools for both genders,
 Recreation and entertainment services,
 Food and beverage,
 Grocery markets,
 Delivery services,
 Laundries.

Residential Compounds
This is a niche market of high-income residents, mainly westerns who live as families within the
boundaries of the gated compounds. The compounds are large in size, consisting of different size units
ranging to more than 600 units with a large scale clubhouse and amenities and services.

Following is a list of economic activities to target this niche market:

 Energy management solutions to reduce the rising cost of electricity,

 Nurseries,
 Food & beverage,
 Recreation and entertainment services,
 Laundries,
 Personal services.

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10. CHALLENGES
In view of the current social and economic transformational process in the Kingdom of Saudi Arabia,
major emphasis is put in place to nationalize the retail and services sectors. Bahraini businesses
expanding their services to the Saudi market need to consider in their plans the manpower issue and
make sure they stick to these regulations.

Due to the proximity distance of the projects to Bahrain, businesses are encouraged to hire Bahrainis
as they are considered as nationals in the Saudi regulations. Saying that, the logistics issues of crossing
the causeway and the border need to be considered.

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11. WAYFORWARD

In order to reap the benefits from this study, it is recommended to present the findings of the study to
the chamber of commerce and encourage them to share the report with their members.

Tamkeen to consider A’aber program to extend Tamkeen support services to the businesses wishes
to expand in the Saudi market.

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