Adel, Sidra Capital launch SAR 1.3B Dammam housing project

Dammam's housing market has been tight for several years. The city's population grew roughly 3% annually over the last decade, driven by industrial expansion in Jubail and Ras Al Khair. New supply has lagged, partly because developers found higher margins in Riyadh and Jeddah. The Adel District targets mid-income buyers with unit prices expected to fall below SAR 1 million, a segment where demand is strongest.

The revenue-sharing structure has a second implication. Sidra Capital collects its cut only after sales close, which means the developer bears the upfront construction cost. Adel financed that out of retained earnings and a drawn credit facility. The company's balance sheet had SAR 280 million in cash and equivalents at the end of last quarter, enough to cover roughly 20% of the project cost upfront. The rest comes from progress payments tied to construction milestones.

Sidra Capital is one of a handful of Saudi firms licensed by the CMA to manage real estate investment funds. It has co-invested in three other residential projects since 2022, all in Riyadh. The Adel District is its first in the Eastern Province. The firm's typical mandate runs five to seven years, which sets a timeline for full unit absorption.

Pre-sales are scheduled to open in the third quarter of this year. Construction is expected to take 36 months, with first handovers in early 2028.