Saudi-based Abdullah Al Othaim Investment Company has launched a dedicated real estate development arm, Al Othaim Developments, with plans to invest more than SAR16 billion ($4.27 billion) in about 10 projects over the next two years.

These projects would comprise about 8,000 residential units across several Saudi cities, said a statement from Abdullah Al Othaim Investment Company.

The new unit will focus on integrated destinations combining residential properties with hospitality, retail, entertainment and office facilities, depending on the location and market requirements, the company said.

The new business will build on the expertise and investment capabilities of Abdullah Al Othaim Investment Company, while operating as a dedicated platform for real estate development and investment opportunities, it stated.

Its first project is The O Residence in Dammam, with further developments planned in other Saudi cities under the two-year investment programme.

"The launch of Al Othaim Developments marks a new strategic milestone in the group's journey," remarked Abdulmalik Abdullah Al Othaim, the Vice Chairman and CEO of Abdullah Al Othaim Investment Company.

"We do not view real estate development simply as an addition to our portfolio. Rather, it is a sector in which we aspire to build an integrated presence through a specialised platform that understands market needs and translates them into thoughtfully planned destinations," he stated.

Al Othaim said the company aimed to develop projects that go beyond standalone residential units by combining housing with services and amenities designed around residents' daily needs.

"The success of any real estate project begins with a deeper understanding of what people are looking for and how their needs and lifestyles are changing," he stated.

The differences between cities and locations would determine the mix of components included in each development, he added.

Al Othaim pointed out that its development strategy would allow it to tailor each project to its location and target market while maintaining a broader focus on creating integrated destinations.

Al Othaim Investment, which operates across a range of consumer and investment businesses, said it would continue developing its service ecosystem and pursuing strategic partnerships to enhance its projects and the experiences they offer.-TradeArabia News Service