Al Majdiah Residence CEO says listing shares on Saudi market delivers strategic goals, demand for homes ‘on the rise’

Abdulsalam Al-Majed, CEO of Al Majdiah Residence

Abdulsalam Al-Majed, CEO of Al Majdiah Residence, said that going public in the Saudi market will achieve several strategic goals for the company, including governance, sustainability and maintaining solid growth rates.

Listing the company’s shares on the Saudi market will also increase Al Majdiah Residence opportunities to secure credit and enhance its partnerships with investment funds, Al-Majed told Argaam in an exclusive.

Al Majdiah Residence aims to sell 3,000 residential units this year. It developed more than 12,000 homes in 850 building over the last five years.

The Saudi real estate marketing is witnessing a boom in all districts, thanks to various mega projects and the related regulatory measures in the construction and real estate development market. These actions reshaped the sector and enhanced the quality of real estate projects, while reducing unplanned construction. They helped the market reach maturity, he added.

All signals show that demand for residential units is on the rise across the Kingdom, including Riyadh and Jeddah. Prices are controlled by various factors, mainly regulations, availability of land and the continued extension of bank facilities to potential home owners.

Al-Majed added that fluctuations in the prices of building materials will affect the cost of residential units. However, the reason behind a rise in the prices of building materials is sometimes temporary, such as supply chain disruptions due to the COVID-19 pandemic and the related lockdowns.

Many projects have resumed operations as supply chains started to recover, Al-Majed elaborated, noting that market developments and price changes should be monitored.

Al Majdiah Residence appointed Saudi Fransi Capital as financial advisor for its initial public offering (IPO) on the Saudi Exchange (Tadawul).