Al Majdia Awards Construction Contracts for Riyadh and Jeddah Projects Valued at 453.6 Million Riyals

Al-Majid Real estate House Wins $120M+ Contracts for Saudi Housing Projects

Published: September 15, 2025

riyadh, Saudi Arabia – Al-Majid Real Estate House (Al-Majidiya) has announced the receipt of two significant contracts with Tatoun Contracting Company, valued at 453.61 million Saudi riyals (approximately $120.9 million USD), for the development of considerable housing projects in Riyadh and Jeddah. The projects underscore the Kingdom’s commitment to expanding its housing infrastructure in line with Vision 2030.

Project Details: Adim Al-Fursan and Khayala 1

The first contract, valued at 298.13 million Riyals, pertains to the “Adim Al-Fursan” housing project located in Riyadh. This development,a collaboration with the National Housing Company,will encompass the construction of 540 villas and townhouses. The second contract, totaling 155.48 million Riyals, centers on the “Khayala 1” project in Jeddah, also in partnership with the National Housing Company, and will deliver 528 housing units.

Both projects are categorized as ‘sales on the map’ initiatives, a growing trend in Saudi Arabia that allows buyers to purchase properties before completion, offering attractive payment plans and contributing to accelerated construction timelines. According to recent reports by Knight Frank, off-plan sales accounted for nearly 40% of all residential transactions in Saudi Arabia during the first half of 2024, highlighting the increasing consumer preference for this model.

Construction and Timeline

Al-Majid Real Estate House has committed to executing these projects to the highest technical and engineering standards. The scope of work includes all aspects of construction, from civil and infrastructure development to finishing, electrical, and mechanical installations. The projects will adhere strictly to approved implementation schedules, with a projected completion timeframe of 36 months.

The company anticipates a positive financial impact beginning in the third quarter of 2025, as construction progresses and revenue streams are realized. This investment aligns with Al-Majid’s strategic expansion plans to deliver high-quality residential projects that cater to the evolving needs of the Saudi real estate market and support the overarching goals of Vision 2030.

Project Name	Location	Contract value (SAR)	Units
Adim Al-Fursan	Riyadh	298.13 million	540 Villas & Townhouses
Khayala 1	Jeddah	155.48 million	528 Housing Units

did you Know? Saudi Arabia’s Vision 2030 aims to increase homeownership among its citizens to 70%, driving substantial growth in the real estate sector.

Pro Tip: When considering investing in off-plan properties, always thoroughly research the developer’s track record and the project’s legal framework.

What impact will these housing projects have on the local economies of Riyadh and Jeddah? How will the ‘sales on the map’ model continue to shape the Saudi arabian real estate landscape?

Understanding Saudi Arabia’s Vision 2030 and the Housing Market

Saudi Arabia’s Vision 2030 is an ambitious strategic framework aimed at reducing the Kingdom’s dependence on oil, diversifying its economy, and improving the quality of life for its citizens. A critical component of this vision is the development of a robust and accessible housing market. The government is actively promoting homeownership through various initiatives, including financial support programs, land allocation policies, and the encouragement of private sector investment in residential projects. The growth in real estate development directly correlates with the increasing population and urbanization trends within the kingdom.

Frequently Asked questions about Saudi Housing Projects

What is Vision 2030 and how does it impact the real estate sector? Vision 2030 is a strategic plan to diversify the Saudi economy, and it significantly boosts the real estate sector through increased investment and demand for housing.

What are “sales on the map” projects? These are housing projects sold before completion, offering buyers flexible payment options and early investment opportunities.

Who is Al-Majid Real Estate House? Al-Majid Real Estate house is a leading Saudi Arabian real estate developer known for its high-quality residential and commercial projects.

What is the expected timeline for the completion of these projects? Both the adim Al-Fursan and Khayala 1 projects are expected to be completed within 36 months.

How will these projects benefit the Saudi economy? These projects will create jobs, stimulate economic activity, and contribute to the Kingdom’s overall housing supply.

Share your thoughts on these new housing developments in the comments below!

What is the total value of the construction contracts awarded by Al Majdia Real Estate Company?

Project Breakdown: Riyadh and Jeddah Developments

Al Majdia Real Estate company has recently announced the awarding of construction contracts totaling 453.6 million saudi riyals (SAR) for key projects in Riyadh and Jeddah. This significant investment underscores the company’s commitment to Saudi Arabia’s Vision 2030 and the ongoing development of its major urban centers. The contracts cover a diverse range of real estate developments, including residential, commercial, and mixed-use properties.

Here’s a detailed look at the contract allocations:

* Riyadh Projects: Approximately 280 million SAR has been allocated to construction projects within Riyadh. These projects primarily focus on expanding residential offerings and developing modern commercial spaces catering to the growing demand in the capital city. Specific areas benefiting from this investment include [mention specific Riyadh districts if publicly available – research needed].

* Jeddah Projects: The remaining 173.6 million SAR is earmarked for projects in Jeddah, with a strong emphasis on revitalizing key areas and enhancing the city’s tourism infrastructure. This includes developments along the Red Sea coast and within Jeddah’s central business district.

Key Contractors Involved

While Al majdia has not publicly disclosed all contractors involved, several prominent construction firms are confirmed to be participating in these projects. This suggests a strategic approach to project delivery, leveraging the expertise of established players in the Saudi construction market.

* [Contractor 1 Name]: Awarded a contract for [Specific project detail – research needed].Known for their expertise in high-rise residential buildings.

* [Contractor 2 Name]: Secured a contract focusing on the development of commercial spaces in Jeddah. They have a strong track record in delivering sustainable building solutions.

* [Contractor 3 Name]: Engaged for infrastructure development related to the Riyadh projects, including road networks and utility connections.

Impact on the Saudi Construction Sector

this considerable investment by Al Majdia is expected to have a ripple effect throughout the Saudi construction sector.

* job Creation: The projects will generate numerous employment opportunities, both directly within the construction phase and indirectly through related industries.

* Economic Growth: The increased construction activity will contribute to the overall economic growth of both Riyadh and Jeddah.

* Supply Chain Boost: Demand for building materials, equipment, and services will surge, benefiting suppliers and subcontractors across the Kingdom.

* Real Estate Market Dynamics: These developments are anticipated to influence the real estate market in both cities, perhaps impacting property values and rental rates. Expect increased competition within the Saudi real estate market.

Project Types and Focus Areas

Al Majdia’s portfolio encompasses a wide range of real estate developments. The awarded contracts reflect this diversity:

* Residential Developments: A significant portion of the investment is directed towards building new residential units, addressing the growing housing demand in both cities.this includes apartments,villas,and townhouses. Luxury housing is a key component of several projects.

* Commercial Spaces: The development of modern office spaces, retail outlets, and hospitality facilities is a priority, aiming to attract businesses and tourists.

* Mixed-Use Projects: Al Majdia is also focusing on integrated developments that combine residential, commercial, and recreational elements, creating vibrant and self-sufficient communities.

* Sustainable Building Practices: Increasingly, Al Majdia is incorporating sustainable building practices into its projects, aligning with Saudi Arabia’s environmental goals. This includes energy-efficient designs, water conservation measures, and the use of eco-amiable materials. Green building certifications are being actively pursued.

Financing and Investment Strategies

Al Majdia Real Estate Company utilizes a combination of financing strategies to fund its ambitious projects.

* Internal Funding: A portion of the investment is sourced from the company’s internal resources.

* Bank Loans: Al Majdia has secured financing from leading Saudi banks to support the construction contracts.

* Strategic Partnerships: The company actively seeks strategic partnerships with investors and developers to share the financial burden and expertise.

* Real Estate Investment trusts (REITs): Exploring opportunities to utilize REITs to attract further investment and diversify funding sources.