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| A man shops for dates at a local shop ahead of the holy fasting month of Ramadan in Dammam, Saudi Arabia |
State-owned Saudi property developer Raza is planning more mixed-use projects that could combine offices, homes and leisure facilities in the latest sign of the conservative Islamic kingdom experimenting with a more open society.
Under plans to transform Saudi Arabiaโs economy and society, Crown Prince Mohammed bin Salman has sanctioned movies, music and sports once deemed un-Islamic to try to appeal to the countryโs overwhelmingly young population.
Strict social rules have also been relaxed, especially in the capital Riyadh, after the crown prince clipped the wings of the religious police which for decades had punished people for playing music in public, dressing immodestly or mixing with members of the opposite sex.
Raza Chief Executive Waleed Aleisa said a โcritical catalystโ for the firmโs new plans was the change in lifestyle for Saudi citizens and residents.
โThere is a gap in the market for this concept: place-making and mixed-use developments,โ he said during an interview.
โThis is a young Saudi generation, and women are increasingly accessing the job market, so demand is changing and now people expect to do everything at the same place. So we provide the retail, shopping, schools, clinics and entertainment in the same area.โ
Raza, the real estate arm of the Public Pension Agency (PPA), currently manages 2 million square meters of office, mixed-use and community developments in Riyadh, Jeddah and Dammam.
It aims to double assets under management to 26 billion riyals ($6.9 billion) by 2024, Aleisa told Reuters.
As well as property development, Raza will also offer asset management, property management and commercial services under its new strategy.
It currently manages only PPA assets, but plans to take on assets of third-party investors such as banks, and real estate investment trusts (REITs), Aleisa said.
โThis shift is widely expected to attract a fresh wave of investments and also opportunities for partnerships,โ he said.
Razaโs mid-to-high end properties in Riyadh include the Diplomatic Quarter and the Digital City.
