Dar Al-Arkan Real Estate(Arabic: دار الأركان)is a Saudi Arabian property development company. It is the largest developer by market value in Saudi Arabia.
Based in Riyadh, It was established in 1994 by six prominent business families with significant real estate development experience in response to the increasing demand for quality housing from the rapidly growing Saudi population. From July 2002 to January 2004, Dar Al-Arkan operated as a limited liability company with a capital base of SR140 million (US$37 million).
Dar Al-Arkan increased its capital to SR5.4 billion (US$1.4 billion) through a private placement in the domestic market in 2004 while converting to a partnership limited by shares. Subsequent to the private placement, Dar Al-Arkan converted to a joint stock company in 2005 (i.e. a company with a minimum of five shareholders who are restricted from selling their shares (except with respect to transfers to each other) for a period of at least two years and can be listed on the Saudi stock exchange). The founding shareholders currently own 70% of the Company. In December 2007, the Company listed its shares on the Saudi Stock Exchange (Tadawul All Share Index) under the symbol 4300.
The progression of Dar Al-Arkan from a small real estate developer to one of the largest in KSA is a result of consistent growth since its inception. Coupled with significant growth and expansion during the last five years, Dar Al-Arkan was well positioned to capitalise on the economic boom in the Kingdom. During this period, Dar Al-Arkan substantially increased the scale of its activities, both in terms of number and size of projects. Increasingly, Dar Al-Arkan is the leading provider of master-planned lifestyle communities from the private sector in the KSA market.
Dar Al-Arkan’s rapid growth corresponds to a clear shortfall in the supply of housing units and an increasing demand for residential real estate in KSA, particularly within the middle-income segment of the market. Further, KSA has a relatively youthful population (particularly among Saudi nationals) and growth rates are high. As at 2005, it is estimated that about 37% of the population is below the age of 15, 56% below the age of 25 and almost 66% below the age of 30. Population growth is expected to remain high and therefore Dar Al-Arkan’s management expects the rate of new household formation to continue to rise for the foreseeable future.
As of 31 December 2008, Dar Al-Arkan had total assets of SR20.1 billion (US$5.3 billion), with shareholders’ equity of SR11.7 billion (US$3.1 billion). Total revenues and net income reached SR5.6 billion (US$1.5 billion) and SR2.3 billion (US$628 million), respectively.
In addition to its head office in Riyadh, Dar Al-Arkan has offices and branches across KSA, including Mecca, Jeddah and Madinah. In total, Dar Al-Arkan has seven branches and employs a staff of over 450.