With seven decades of experience understanding how people in Saudi Arabia shop, eat, meet and spend their time, Abdullah Al Othaim Investment Company is bringing that consumer insight into the Kingdom’s real estate sector through the launch of Al Othaim Developments.
Abdulmalik Abdullah Al Othaim, Vice Chairman and Chief Executive Officer of Abdullah Al Othaim Investment Company, said the Group’s move into real estate development is a natural extension of its longstanding understanding of the way people live and interact with destinations. He explained that Al Othaim Developments aims to bring living, working, hospitality, retail and entertainment together within integrated destinations, responding to a market where buyers increasingly expect a community and lifestyle experience, rather than simply a residential unit.
He noted that the timing reflects the evolution of the Saudi market, particularly as Vision 2030 continues to raise homeownership and quality-of-life targets. Against this backdrop, Al Othaim Developments plans to launch 10 projects across the Kingdom over the next two years, with total investment exceeding SAR 16 billion and approximately 8,000 units.
Al Othaim stressed that the scale of the pipeline will be supported by an execution model designed to protect quality as the company expands. Rather than announcing projects while they remain at an early planning stage, the company intends to bring developments to market once they are well advanced.
He pointed to The O Residence in Dammam as an example, noting that the project is approximately 80% complete as it launches, with buyers already able to walk through finished mock-up units at the sales centre. He explained that this approach is supported by dedicated development, design and project management teams, phased delivery and strong governance throughout every stage of the process.
“The pace of our pipeline will never set the pace of our quality,” Al Othaim said, emphasising that the company’s expansion will be matched by the systems and governance required to maintain execution standards.
On the decision to launch in Dammam, Al Othaim said the company does not view its entry into the Eastern Province as a contrarian move. He highlighted the region’s deep economic base, growing population of families and professionals, and demand for well-planned, high-quality homes with everyday convenience built in.
This demand informed the decision to launch The O Residence at Al Othaim Park on King Fahd Road in Dammam, a destination that brings together residences, a mall, a five-star hotel, offices and open spaces. Al Othaim added that Riyadh remains a priority market for the company, with projects there to be announced in due course.
He explained that while The O Residence is residential, the project is designed around the company’s broader integrated destination model. Residential communities, he said, are where daily life begins, and daily life is what keeps shops, restaurants and services active throughout the year.
The O Residence comprises 980 units across eight towers within Al Othaim Park, with the mall, five-star hotel, fitness club, offices and landscaped walkways surrounding the residences. Dedicated resident entrances are designed to maintain privacy, while the destination has been planned around residents from the outset rather than having its wider amenities added later.
Al Othaim said the Group’s experience across malls and entertainment venues also provides valuable consumer insight that directly informs its developments. With millions of visitors passing through its destinations, the Group has gained an understanding of how families move through a destination, when they visit and what encourages them to return.
At The O Residence, he noted, this insight influenced the decision to separate resident access from public visitor flows, allowing families to benefit from the convenience of an integrated destination without compromising the privacy of their homes. It has also informed the project’s unit mix, which ranges from studios to larger family apartments.
Regarding the operation of mixed-use components, Al Othaim said the company will adopt a combination of in-house operations and partnerships with specialist operators. He explained that Al Othaim already operates retail, entertainment and hospitality businesses at scale, allowing it to operate selected components through its existing platforms and brands.
Where specialist expertise can enhance the experience, he added, the company will bring in leading local and international operators. In either case, every component must add value to the destination.
Al Othaim also welcomed the new property ownership regulations for non-Saudis and said the company is following them closely. He noted that Al Othaim Developments’ planning already considers a range of buyers, including Saudi families, expatriate residents and international investors.
Where projects fall within designated ownership areas, he said the company will ensure that the offering, from unit design to services, meets the needs of international buyers.
On the company’s approach to its development assets, Al Othaim said each project will be evaluated based on its location, market dynamics and long-term value. He explained that the company’s strategy balances selling and holding assets, with selected projects expected to retain strategic components, particularly hospitality, retail and other income-generating assets where long-term ownership can create additional value.
He said this approach is intended to provide the company with both a strong development pipeline and stable recurring income over time.
Al Othaim also highlighted the role of strategic partnerships in supporting the company’s expansion. He said the company is working with government entities, operators, hospitality brands, financial institutions and specialist consultants, with these partnerships enabling Al Othaim Developments to move faster while bringing the right expertise into each destination.
He noted that specific agreements will be announced as they are finalised. Looking ahead, Al Othaim said the company’s definition of success will extend beyond the number of units delivered or sales achieved. While delivery, sales and resident satisfaction will all remain important, he believes the stronger measure will be whether people genuinely choose to stay.
He explained that the real test will be whether residents renew their commitment to the community, recommend it to others and see their homes hold their value.
Ultimately, Al Othaim said the company’s ambition is to create destinations that become an enduring part of people’s lives. “If our destinations become places people genuinely want to live, work and visit, we will know we have succeeded,” he said.
Source: Saudi Gazette