30 - Talaat Moustafa Group

46Current ProjectsNasamat Al RiyadhAiming to replicate the success of its Egyptian city and communitycomplexes outside its borders, and to capitalize on the growingdemand in the Saudi Arabian real estate market, TMG enteredinto a 50:50 joint venture with Saudi partners Al Mehedeb, AlFawzan and Al Kahtani through their company "Al Oula" inJanuary 2007. The joint venture company, Areez, will initiallydevelop city and community complexes on a total land area of4.1 mn sqm in Riyadh and 2.8 sqm in Jeddah, both developmentsare chosen in prime locations and will be targeting middle andupper middle income classes.TMG has specifically chosen KSA to be home to its first projectto penetrate a new market outside the local market due to theshared similarities between the Egyptian and Saudi Arabian realestate markets, the large potential for growth in the Saudi market,and the strong marketing experience, TMG teams have acquiredthrough the existence of their sales branches in Riyadh and Jeddahsince 1991.The Saudi market has a substantial unmet domestic demand thatis estimated at 200,000 units per annum and a backlog of morethan 800,000 units; a large portion of which is related to themiddle income classes, targeted by TMG.Land bankAreez has purchased a 4 mn sqm plot of land in Riyadh, on whichit is currently developing Nassamat Al Riyadh on 3 mn sqm, witha potential for extension on a further 1 mn sqm of land.TMG has opted to start its operations in the city of Riyadh sinceit is Saudi Arabia’s fastest growing housing market. Accordingto recent studies, the Saudi capital’s population has grown at anannual rate averaging 2.2% over the past fifteen years, whichcreates substantial new demand every year resulting in strongerdomestic demand fundamentals when compared to expatriatedriven markets in most other GCC countries.