Sheikh Youssef Al Shelash Explains What Sets Dar Al Arkan Apart From Other Real Estate Developers
Dar Al Arkan is a leading real estate developer in Saudi Arabia. Sheikh Yousef Al Shelash is the company chairman responsible for a range of aspects of the real estate development process for residential and commercial buildings, including acquisition, development, demolition, construction, restructuring, and maintenance of properties.
With Yousef Al Shelash leading the way, the real estate development company always stays one step ahead. The company strives to deliver the highest quality living experience and a return on investment. It states, “Dar Al Arkan has introduced technology into each of its projects, making home automation, real estate digital portals, and 3D concrete printing a part of the norm.”
The chairman’s purpose is not only to fulfill a commercial target by generating for the company’s shareholders, but also to build cities and communities where families can thrive. He said, “I take pride in showing the world another image of what Saudi is by being successful in [places] like Dubai [United Arab Emirates], Oman, and Qatar.”
Modernization and Innovation in the Middle East
Innovation is an essential aspect of what sets Al Shelash and Dar Al Arkan apart from other property developers. The company joined forces with Quara Holding, an incubator for technology startups and an innovation center, to create revolutionary real estate platform Wasalt.
The Wasalt platform exists as a website and mobile app. It’s focused on real estate brokerage to ensure that all properties listed are verified to guarantee top quality and fair pricing.
According to the company, “Wasalt is your one-stop portal for all your real estate needs, from property search, purchase, or rent, to real estate marketing across both the commercial and residential sectors.
“As the first platform offering reliable real estate brokerage services, Wasalt’s team of distinguished experts will ensure that every property is managed and developed according to the highest standards while following all the proper protocols and managing cross-industry collaborations to ensure a seamless and enjoyable experience for every customer.”
Under Yousef Al Shelash’s leadership, the company collaborated with COBOD, a worldwide leader in modular 3D construction printers. These printers are capable of printing an entire house using only three workers, printing up to 1 meter of concrete per second.
According to the company, “Dar Al Arkan will be the first in the Kingdom and the region to introduce the 3D concrete printer into the real estate market. 3DCP is a future-forward printer that is capable of printing large-scale residential units and will be operated by a 100% Saudi team. Leveraging 3DCP will not only transform the real estate market through increased efficiency, quality, and growth, but also empower national talent, resulting in a better quality of life for everyone in the Kingdom.”
The Benefits of 3D Concrete Printing
Yousef Al Shelash is onto something: With 3D printing, premier structures can be created with almost no error and minimal waste. The smaller workforce required leads to increased productivity, with the added advantages of building at a faster pace with quicker setup and disassembly. It’s EU certified to meet the highest safety standards, and is easily adjustable to print different-size residential units.
How the Property Development Company Navigates Challenges
Al Shelash has always been a visionary. In 2012, he stated, “The latest developments in the Saudi market are likely to have a positive impact on the real estate industry in general.” He was correct.
“Despite the 2009 economic turmoil, the Saudi housing industry witnessed remarkable growth and has become one of the fastest-growing housing industries in the Middle East,” stated the CEO. “The industry’s growth is even more remarkable in light of the limited number of large developers who can address the growing demand for residential property.”
And during times of credit crisis, the business executive stated, “In such a difficult environment, our challenge is not profit maximization, but rather how to maintain our business commitments and keep our projects on track. As a result, cash flow management has been our key focus.”
Between 2007 and 2012, Dar Al Arkan paid SAR 4.3 billion (approximately $1.1 billion) as cash dividends and about SAR 4 billion to other creditors. “That’s over SAR 8 billion in cash outflow over the last five years,” stated Al Shelash. During that time, the company was in the process of developing six large-scale projects. “So it is worth noting that these accomplishments — which I consider great achievements — took place during the worst crisis in living memory,” stated Yousef Al Shelash.
Yousef Al Shelash’s Career in Retrospect
In addition to being the chairman of Dar Al Arkan, Al Shelash is the chairman of the Bank Alkhair in Bahrain and the Saudi Home Loans Company in Saudi Arabia. After attending the Institute of Public Administration Al Riyadh, where he earned a Master of Science in law and legal procedures, and the Imam Mohammad Ibn Saud Islamic University, where he received a Bachelor of Science in Shariah, he played an integral role in introducing the home mortgage market to the Kingdom.
“People trusted me more because I was a lawyer,” he said. “I was able to start acquiring real estate using those real estate funds and then helped more and more people subscribe to the funds.” Yousef Al Shelash also has considerable training in financial management and evaluation of investment projects.
He said, “It started with small projects and benefited from the market growth, and then the company went public in 2007. Now, after 15 years, there is a completely developed mortgage market in Saudi, which includes mortgage lenders, banks, and nonbanks. There are also refinancing companies that belong to the government that [are] also buying mortgages to continue providing liquidity to the market, but that did not exist when Saudi Home Loans started. It needed to evolve with regulation, and they needed to convince so many banking institutions to provide funding for these mortgages.”
During that time, the World Bank became interested in promoting home ownership and home financing in Saudi. “Convincing the World Bank to be part of that organization was a very big step because once so many of the banking institutions saw the International Finance Corporation of the World Bank getting involved in that project, it gave a lot of trust to many of the banking institutions. Actually, some of the first funding came from the World Bank from the IFC. Then the other banking institutions followed,” said Al Shelash.
The established mortgage industry has made it more manageable for families looking to grow their roots in a home. One of Dar Al Arkan’s family-friendly, mixed-use projects is the Shams Al Arous, located east of Jeddah, Saudi Arabia.
This high-quality integrated community is an ambitious project spanning 863,000 square meters. According to the company, “It features an array of residential and mixed-use buildings, in addition to schools, commercial centers, beautifully landscaped green spaces, government offices, and mosques. Shams Al Arous offers residents a peaceful and ideal modern living environment.”
It seems that the sky’s the limit for the property development company. It has expanded beyond Saudi Arabia and is today operating in eight countries.