High demand for luxury housing supports DAMAC expansion of residential property projects

In fact, according to the 'Doing Business 2008' report issued by the World Bank and the International Finance Corporation (IFC); Saudi Arabia is one of the fastest reformers coming in 16th place on a global level and in first place regionally, joining the ranks of the top countries worldwide for ease of doing business.

"Saudi Arabia's ranking within the IFC report highlights the success of the vision set by The Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, for complete economic reform of the business environment in the Kingdom,"

said Sami Al Hussain, Business Development GM for DAMAC Properties.

He went on to say:
"There are three main factors influencing the Kingdom's economic growth and the resulting demand for residential real estate. First, the Saudi market is a budding environment that has ample opportunity for real estate development due to its great expanse of land, while the second factor is the Kingdom's richness of resources. Third, Saudi Arabia is in the midst of a population boom that will necessitate and estimated 1.3 million units over the next seven years, representing an annual requirement of 190,000 units, and requiring a total investment of more than SR680bn. These positive factors are vital concerning our strategic expansion and development plans in the Kingdom, where we have already succeeded in establishing a strong leadership position in the luxury property market."

DAMAC Properties, a part of DAMAC Holdings, is the Middle East real estate industry leader in the development of superior quality residential properties and has developments at both Jeddah and Riyadh. The first DAMAC project in Saudi Arabia is the Al Jawharah residential tower located on the Jeddah Corniche just a few minutes drive from the Hilton Hotel. Units in this prestigious development are already being offered for sale to discerning Saudi home buyers who appreciate the unparalleled standards of architectural detailing and interior design that are the hallmark of DAMAC properties everywhere.

"DAMAC Properties presents a new understanding for luxury residential real estate in the Saudi market, with its unparalleled standards of architectural detailing and interior design that are the hallmark of DAMAC properties everywhere. As part of our commitment to the Kingdom we have strengthened our presence with full scale operational offices in Riyadh, Jeddah and Dammam, employing a sales force consisting mainly of Saudi nationals, who we provide with training and career opportunities in the business of international property sales and residential real estate development projects."

said Ziad El Chaar, International General Manager for DAMAC Properties,

Regionally, Saudi Arabia is top of the list in the investment sector, based on a real estate market evaluation of $640bn for the coming 20 years. At the same time, Saudi investors are seeking out other markets in the Gulf region, the most attractive being the United Arab Emirates, which is the second largest economy in the GCC after Saudi Arabia.

The UAE Ministry of Economy recently issued a report showing Saudi Arabia ranks as the 7th investor in the country, stating that out of the $18.67bn foreign investments in the UAE during 2007, $650m were from Saudi Arabia.

Picking up on this point, Sami Al Hussain commented on the importance of investors preserving local capital within local markets, which is mutually beneficial to all concerned, the strong links between Saudi Arabia and the UAE are highlighted by the Emirate's popularity as a business and tourist destination.

The number of Saudi visitors in 2007 was the highest out of all the GCC states and Arab nations, numbering 446,598 visitors followed by Oman with 186,491 visitors then Kuwait 158,221 where Egypt comes forth with 117,027 and Lebanese sixth 95,361 visitors. Overall visitors' total was 6,951,798 visitors, Saudi is the second highest after UK 752,381, and then USA is 3rd with 385,720 visitors.

DAMAC Holdings has now grown into a global conglomerate with more than 7000 employees in 18 countries. Being one of the first private sector companies to make a commitment to the Middle East's real estate market, DAMAC Properties has become the market leader with a strong sales record to its credit.