(Bloomberg) The Trump Organization is expanding its footprint in Saudi Arabia with an impressive new development valued at over $1 billion. This project, located in Jeddah, marks yet another venture for the family firm of the US president.
According to the latest statement, the Trump Organization has partnered with Dar Global Plc, a London-listed Saudi developer. This collaborative project will feature few hundred homes along with approximately 200,000 square feet of top-notch office space situated along Jeddah’s main thoroughfare, as shared by CEO Ziad El Chaar during a phone call.
Interestingly, Dar Global is currently working on the construction of a Trump Tower in Jeddah, which will include a hotel, luxurious amenities, and an exclusive members-only club.
The real estate sector in the Gulf region has seen a significant boom in recent years, driven by economic growth and the influx of expatriates from all corners of the globe. El Chaar noted, Our success with the Trump Tower sales motivated us to proceed with this second project. While specifics regarding municipal approvals were scarce, it was implied that the project is still undergoing some regulatory processes.
It’s worth mentioning that the Gulf Area has received intense scrutiny regarding potential conflicts of interest linked to the Trump family’s business dealings due to the close ties between regional governments and local businesses. In a past interview, Eric Trump assured that the company’s deals would exclusively involve private entities.
As real estate prices continue to rise, the Saudi government is keen on encouraging developments to increase the supply of modern housing. Meanwhile, Crown Prince Mohammed bin Salman recently imposed a five-year freeze on rent hikes in Riyadh, aiming to control the unacceptable surge in property prices.
While El Chaar refrained from disclosing detailed financial aspects of the collaboration, he mentioned that in partnerships like this, developers typically earn a fixed fee for design along with sales commissions ranging between 5% and 6%.
The upcoming project on King Abdulaziz Road is not just any development; it will feature a green space inspired by Central Park as its communal centerpiece, and this initiative is named Trump Plaza. Additional features will include upscale serviced apartments and townhouses adjacent to the office spaces, targeting the increasing number of businesses setting up in the Arabian Peninsula.
Importantly, the Trump Plaza in Jeddah will form a crucial part of a larger mega-development termed Manhattan, owned by Dar Global’s parent organization, Dar Al Arkan, which encompasses an expansive area of one million square meters. This ambitious project will host four distinct districts surrounding the central park, with Trump Plaza acting as the significant anchor.
According to the CEO of Dar Global, the firm plans to escalate its project portfolio as they prepare to open the local market to foreign customers. Besides Jeddah, they’ve also begun work on another Trump Tower in Dubai and have similar branded developments taking shape in Oman and Qatar.
–With input from Fahad Abuljadayel.
