Dar Al-Arkan & Samba sign an SR 810 Million Islamic-compliant Murabaha project The project size emphasizes confidence over Dar Al-Arkan's competence as a real estate developer & the economic feasibility of its giant real estate project Samba stresses local banks care fore financing productive projects in support of holistic development
Dar Al-Arkan signed an SR 810 million Islamic compliant Murabaha Agreement with Samba Financial Group for financing four scopes of Al-Qasir Project in Al-Swaidi district in Riyadh. The agreement was signed by Mr. Eisa Al-Eisa, Samba Managing Director & CEO, and Mr. Abdullatif Al-Shalash, Dar Al-Arkan board member.
Commenting on the agreement, Mr. Al-Shalash stated that the agreement is part of Dar Al-Arkan efforts to finance its projects by adopting diversified & Islamic-compliant financing mechanisms and that the company is committed to the international standards that qualify it to win confidence of the financing bodies. He expressed thanks & gratitude to Samba, " which always provides optimum & world-class solutions that not only meet customer needs, but also exceed their expectations".
Mr. Al-Shalash elaborated that "Based on the deep-rooted cooperation with Samba, Dar Al-Arkan managed to acquire this huge financing without following the ordinary financing procedures normally adopted in such matters. The step proves Samba trust over the real estate sector in general and Dar Al-Arkan in particular, and that Dar Al-Arkan has proved Al-Qasir project's economic feasibility & the company competence to run the project by adopting state-of-the art management methodologies where the project is supported by the company's financial solvency that enables it to meet its financial obligations within the agreed upon timeframes".
Al-Shalash explained that the financing deal of four (out of five) scopes of Al-Qasir project in Al-Swaidi district in Riyadh includes construction of 256 villas, 3,000 apartments, 30 thousand square maters of office space and 94 thousand square meters of commercial areas.
Following the signature of the agreement, Mr. Eisa Al-Eisa, Samba Managing Director & CEO expressed comfort, commenting that the agreement is part of Samba farsighted vision which is to become the leading financial provider across Saudi Arabia that provides financial solutions exceeding customer expectations, and that it adheres to its basic principles & commitments to avail creative solutions to customers combining both valuable consultation & free choice. He explained that Samba exerted efforts to meet Dar Al-Arkan needs of financing Al-Qasir project by adopting direct Islamic Murabaha attested by Samba legal body chaired by Sheikh Abdullah Al-Maniea.
Speaking about the vital role that Samba plays for financing the productive projects, supporting private sector performance & reactivating the development process, Al-Eisa said, "Our principles induce us to become exemplary of the national institution that renders services to the community. That is why we look for methods to help customers realize lucrative returns that match with the public interest and community service.
Because of the importance of real estate sector & its pioneering role in the national economy, we have issued an analytically professional report on the real estate & its future horizons in Saudi Arabia. Samba is keen in providing necessary finance & support for any real estate investment institution that has transparent vision to develop the real estate environment in Saudi Arabia."
It is worth noting that one-year has elapsed since Dar Al-Arkan completed Al-Qasir infrastructure such as pavements, lighting systems, electricity, water, sewage system, green belts. Building construction phase is in process where by early 2007, the first batch of residential buildings will be ready. The company will start the selling process of residential units in late summer 2006. Al-Qasir is one of the landmark projects aimed at holistic development of residential districts with an estimated cost of SR 3 billions