Jabal Omar plans to sell 400 hospitality units, develop Phase 7

Jabal Omar Development Co. announced strategic initiatives after the Jabal Omar project was included among the geographic areas where non-Saudis are allowed to own real estate.

The company said in a Tadawul statement that it plans to offer 400 existing hospitality residential units for sale this year as a first phase. The proceeds will mainly be used to reduce debt.

Jabal Omar also plans to develop the seventh and final phase of the project. The development strategy will focus on increasing the number of hospitality residential units available for sale while relying on off-plan sales to reduce financing requirements.

The company expects these initiatives to enhance profitability and strengthen cash flow. Lower financing costs and reduced capital expenditure on the final phase are expected to support this objective.

Jabal Omar currently owns a real estate portfolio of more than 6,500 hotel rooms and suites. The total is expected to reach 7,700 rooms and suites once the remaining parts of Phase 4, which are nearing completion, are finalized.

This will strengthen its competitive position and allow it to benefit from the new regulations, the company said, adding that all of these initiatives remain subject to the relevant regulatory approvals.

Jabal Omar said that the Cabinet's approval of the executive regulations governing foreign real estate ownership, along with the designation of geographic areas where non-Saudis may own property—including the Jabal Omar project—is expected to broaden the base of potential Muslim investors and property owners from around the world. The company also expects stronger demand for real estate assets and products within the designated areas.

According to Argaam data, the Saudi Cabinet recently approved the executive regulations for the foreign real estate ownership law and the geographic areas where non-Saudis are permitted to own property.