Al Saad Group (ASG)

Business Presentation
 Al Saad Group (ASG)
! Welcome
! Company Profile
- About Us
- Vision
- Objective
! Projects
- Housing Project
- Cement Plant Project in Kingdom of Saudi
Arabia
- Cement Plant Project in Sudan
- and other projects.
! Question & Answers
! Thank you.
Business Presentation
Company Profile
Al Saad Group (ASG) is purely Saudi based reputed construction company
of Kingdom of Saudi Arabia. It is owned and managed by Dr.
Abdulrahman Al A. Saad, as a private ownership, assisted by other
specialized advisors and specialists in the various constructions and real
estate activities. At the same time the company is participating with
honorable princes and reputable investors in the real estate market. The
group also collaborated and partner with many well known and reputed
construction groups like Al-Othaim, Al-Jasser, Al-Ahmad, Al-Mutlaq, Al-
Towejri and many others.

Establishment History: The establishment formed in 1982 as private

ownership, the activities of the establishment since formed is in the field
of construction and contracting. During this period the firm has
constructed many housing villas & buildings, educational facilities and
many others.
In the year 2002 G., the establishment converted to Al Saad Group (ASG)
as result of expanding of its activities which concentrated in developing
& investing in real estate field. The group involved in many land
development in Al-Qassim and in Al-Delam.
Business Presentation
Vision
Al Saad Group (ASG) vision which mainly depends upon securing
the most suitable housing for the medium and low class income
family and helping them to get a most convenient housing
schemes. With our motto "Pay less for More", we constantly
endeavor to construct the best housing, residential and commercial
complexes that are cost effective with world class standard .

Objective
To became a leading regional construction company for providing
low and medium cost housing units and to develop housing units
to satisfy the society’s demand. Our objective for the next coming
5 years is to develop 50,000 housing units across the Kingdom of
Saudi Arabia by using latest housing technology & methods.

Business Presentation
Projects & Factories
Economy and Low Cost Housing Project in
Kingdom of Saudi Arabia.

Cement Plant Factory in Kingdom of Saudi Arabia

Cement Plant Factory in Sudan.

Housing Project in Sudan.

Others Real Estate Projects.

Business Presentation
Housing Project
Introduction
In year 2005, Saudi Arabian government signed World Trade Organization
Organization (WTO) as
to increase the Saudi Arabia economy. At the same time the Saudi Government &
Municipality of Saudi Arabia start focusing on Saudi Arabia Housing
Housing and Real
Estate Sector.

Housing and Real Estate Sector are the major and critical success
success factor for Saudi
Arabia growing economy. It possesses the largest percentage of the the total
investments in the country economy.

Fuelled by record oil receipts, the kingdom has witnessed a boom in construction
and infrastructure projects but realtors say the deficit in housing
housing projects,
especially for low-
low-income households, has not been reduced.

The year 2007 is the first year in which the Saudi Government and
and Municipality of
Saudi Arabia has come up with several plans to face the challenges
challenges of Housing &
Real Estate Sector.

Saudi Government and Municipality of Saudi Arabia supporting both both Saudi
investors and foreign investors coming forward to solve the housing
housing problem and
increase the level of housing complex in Saudi Arabia.

These all brings the tremendous business opportunities for local & foreign
investors to invest in Saudi Arabia Housing & Real Estate sector.
sector.

Business Presentation
Housing Project (Cont…)

Euromoney Conference 2007, Riyadh, Saudi Arabia

“Saudi Arabia needs more homes. With nearly 60% of the population under 25 years old are
already tight supply of affordable new homes in the market. It is clear that action is
needed. Under the perceptive guidance of The Custodian of the Two Holy Mosques King
Abdullah Bin Abdul Aziz this need is now clearly understood and accepted by Saudi
policymakers.
How the Kingdom will achieve its developmental goals. How will the institutional and financial
structure of the housing market develop? What should be done to accelerate the provision of
new, affordable homes for ordinary Saudi Arabians?”

Housing Symposium 3, May 20 - 23 , 2007, Riyadh, Saudi Arabia

“The quality of residential environment is an indicator to the city quality of life. Creating a
better residential environment is all about planning and designing better quality neighborhoods
where people can have a sense of togetherness as well as to people’s values, needs and
aspirations”.

Saudi Arabia International Real Estate Conference (SAIREC), May 21, 2007, Riyadh, Saudi
Arabia
“The Housing & Real Estate Sector is one of the crucial pillars in the national economy. It
possesses the largest percentage of the total investments in the economy. In addition to that, it
also holds an important position in the investment map. Moreover, this sector has possessed a
high percentage of savings and investments in the Saudi housing & Real Estate Sector that
accumulate to about 1,200 billion Riyals, of which 100 to 200 billion is exchanged annually in
this sector.”
Business Presentation
Saudi Arabian Official Authority Study and Observations

As per the study prepared by Saudi Arabia officials, the kingdom will need some 4.5 million new housing
units within the next five years to accommodate its growing population.
population.

The National Commercial Bank (NCB) report said about 648,000 Saudi Saudi nationals will join the Saudi labor
market between 2006-
2006-2010, bringing Saudi participation in the total work force to 46.7%
46.7% by 2010, up from
40.4% in 1995 and 44.9% in 2002. Thus, the changing characteristics
characteristics of the Saudi labor force will
constitute a main determinant of housing market growth moving forward.
forward.

The Saudi residential rental market facilitates accommodations to to nearly 37.5% of the country’s total
population of which 14.7% are Saudi national. This roughly represents
represents around 670,000 rented dwelling
units and in turn will generate potential demand for home ownership.
ownership.

According to National Commercial Bank estimate, the size of outstanding

outstanding housing credit is likely to rise
from SR4.0 billion in 2007 to about SR46 billion by the end of decade,
decade, assuming a gradual rise in the share
of new residential units purchased through housing loans from 10%
10% in 2007 to 55% in 2010.

The current investment drive in residential projects is expected to continue over the medium- medium-term,
undertaken by both the government and the private sector. The investment investment needed to develop the
estimated 2.2 million new housing units at SR 1.12 trillion over the forecast period, representing an average
outlay of SR80 billion per annum.

70% Saudi citizens do not have their own houses, 30% of them havehave the land but cannot able to construct
house because of high infrastructure cost (concrete & raw material),
material), 45% are retired Saudi citizens who do
not have their own houses, 90% of Saudi citizens say that a major
major obstacle in owning a house is land & raw
material, which is not properly developed and is very expensive.

Starting from 2007, Saudi government grants & permits the non-
non-Saudi citizens to buy and have their own
houses.

The construction materials cost has been increased by 40% and the
the rental charges of houses increased by
30%-
30%-40%. Business Presentation
Housing Project (Cont…)
Municipality of Saudi Arabia goal is to enhance & increase the level of the
housing sector by the following;

Making availability of housing units that can be afforded by normal Saudi Arabians.

Providing housing units for low income and middle income class Saudi Arabians.

Producing the housing units to match the increasing population of Saudi Arabia.

Providing good and healthy housing environment to Saudi Arabians in a best cost
effective manner.

Developing the cities and land with proper planning and with global standards.

In next coming 20 years 450,000,000 Sq meters land will be developed for housing.

565,000,000 Sq meters of residential units/complex will be built on this land.

Estimated SAR 720,000,000,000,000 (Seven Hundred Twenty Trillion Saudi Arabia

Riyals) will be invest in developing the housing.

Business Presentation
Housing Project (Cont…)
Support from Government, Banks & Financial Institutes to Saudi citizens and non-
Saudi citizens

In 2007, Saudi Arabian government deposited SAR 18,000,000,000 (Eighteen Billion Saudi Riyals)
and in 2008 they approved to deposit SAR 25,000,000,000 (Twenty Five Billion Saudi Riyals) under
Saudi Real Estate Development Fund (REDF), to provide housing loansloans to Saudi citizens who have
the land and willing to construct the house. Every registered & approved candidate will receive SAR
300,000. (248,000 Saudi citizens have already registered their names
names for this development fund)

Social Insurance Department of Saudi Arabia providing housing loans

loans of SAR 300,000 to 1,000,000
to all Saudi employee & retired employees of all Ministries & Government
Government sectors.

The Ministry of Finance (MOF) has already announced that a draft mortgage law is in place and is
expected to be approved by the end of this year. In anticipation to the long awaited mortgage law, a
number of banks in the Kingdom have already started offering Shariah
Shariah complaint home financing
credit.

Ministry sectors providing housing loan of SAR 300,000 to their employee.

Banks of Saudi Arabia & other financial institutes and housing loans
loans companies providing housing
loans to both Saudi citizens and non Saudi Citizens.

A finance company , which launched with 2 billion-

billion-riyal capital ($534 million), is a joint venture by
Arab National Bank (ANB), which owns 40%, Installment Kingdom (40%),
(40%), Dar Al-
Al-Arkan Real Estate
Development (15%) and World Bank private sector arm the IFC (5%) offering home loans to Saudi
nationals via an Islamic loans system .

Business Presentation
Housing Project (Cont….)
Al Saad Group (ASG) Housing Project Plan

The objective of Al Saad Group (ASG) Housing project is to provideprovide economy class, low
class & high cost housing units both to the Saudi citizens & non-
non-Saudi citizens.

Al Saad Group (ASG) program to build housing units by using latest

latest housing technology &
method to solve the housing problem and accelerate & provide the affordable housing to
ordinary Saudi Arabians and to the expatriates.

Al Saad Group (ASG) plan is to build 50,000 (Fifty Thousand) housing units in coming 5
years that includes economy class and high cost housing units.

Al Saad Group (ASG) acquired 30 lands in 26 different cities of Saudi Arabia, each land
ranging from 300,000 – 1,000,000 square meters. These lands belongs to the Al Saad Group
Group
housing project share holders.

Al Saad Group (ASG) housing project has been divided & categorized
categorized in 10 several
programs and every program will cover the number of housing units
units that has been designed
and allocated for that particular lands.

The first milestone of the housing project is to build 2 model housing

housing units using latest
housing technology. After preparation of these sample units, advertisement
advertisement & marketing will
be done through leading media channel like newspapers, magazines and TV. A seminar will
be conducted to create the awareness in the Saudi market & in the the targeted customers,
about our housing project and latest housing technology.
Business Presentation
LATEST HOUSING TECHNOLOGY & METHOD
Creating and providing affordable housing units to normal Saudi citizens with their tradition, values
and aspirations is one of the biggest challenges for Municipality
Municipality of Saudi Arabia.

Al Saad Group (ASG) believes that the increasing problem of housing

housing in Saudi Arabia cannot be
solved by using the old ordinary construction system, there should
should be some new technology &
method to be introduce that can solve the housing problem and provide
provide the followings;

A housing technology that can solve the increasing problem of housing

housing in Saudi Arabia and
accelerate & provide the affordable housing units with people's tradition, values, needs &
aspirations.

A housing technology that can build house units by saving 30%-

30%-40% of the total cost compare to
the cost born from the old ordinary construction system.

A housing technology that can save much time compare to time taken
taken by old ordinary construction
system.

A housing technology that can produce economy cost & high cost housing
housing units.

The housing units produce by the latest housing technology which can be afforded by normal
Saudi citizens and the non-
non-Saudi citizens.

A housing technology that is approved by International Code Council

Council (ICC) and is being used in
different countries around the world.

Business Presentation
LATEST HOUSING TECHNOLOGY (cont…)

We invite the company having the latest housing technology & method
that can execute the above line of work and to join with us in our housing
project. We also invite & offer the housing technology company to wok
with us and open a joint-venture company of their housing technology to
produce the housing units in Kingdom of Saudi Arabia. The proposed
plan for this joint-venture company is as follows;

A joint-venture company will be establish under the name of Al Saad Group and
The contractor (the company having the latest housing technology).

This joint-venture company will be register with Saudi Arabian General

Investment Authority (SAGIA). http://www.sagia.gov.sa/

A joint account will be open in the Saudi Arabia leading bank (Al Rajhi Banking &
Investment Corp) under the name of joint-venture company. All the financial
transactions of this project will be done through this account. Al Saad Group and
The Contractor both will have equal rights & authority on this joint account.

The production, management & maintenance of this joint-venture company will be

execute & done by the Contractor.

Business Presentation
AL RAJHI BANKING & INVESTMENTS CORP.
AL Rajhi Banking & Investments. A Leading Saudi Arabian banking &
investment Corp. The Group's principal activity is the provision of banking
services comprised of three main segments: Individuals segment (retail),
Corporate and VIP customer segment and international investment
segment.
Al Saad Group (ASG) appointed the Al Rajhi Banking & Investments Corp. as
the custodian of project.
A separate contractual agreement will be prepared & signed with every
involved party, investors and share holder of the project.

Al Rajhi Banking
& Investment Corp

Al Saad Group
Housing Project

The Contractor
(The company having The Foreign & Local
Al Saad Group latest housing Saudi Investors
Technology )
Business Presentation
CUSTOMER / CLIENT Payment Scheme 1:
Customer Payment – Option 1

Step 1

Customers will select the house and

deposit 20% down payment as advance
of the total turn key cost of housing in
project joint -venture account with Al
Rajhi Banking & Investments
Step 2
Al Rajhi Banking &
Investments
After receiving 20% down payment
from the customers , ASG & The
contractor will start constructing the
house for those customers . Step 3

Al Saad Group (ASG) &

The Contractor
After completing the 100% construction
of house and showing to respective banks ,
the banks will issue & transfer the
remaining 80% payment into project
joint-venture account.

Business Presentation
CUSTOMER / CLIENT Payment Scheme 2:
Step 3
Customer Payment – Option 2

Step 1

Customers will select the house anddeposit

20% down payment of the total housing
cost as advance in joint-venture account
with Al Rajhi Banking & Investments

Step 2
Al Rajhi Bank Banking &
Investments
After receiving 20% down payment from
the customers, ASG & the contractor will
start constructing house for those
customers.
Al Saad Group (ASG) &
The Contractor

Co ns truc tion of ho usin g un its.

10 0% C ons truc tion o f h ousing u nits.

am oun t a nd c om p letin g 40%
ins tallm en t 2 0% w ill be p a id.
Afte r re ce iving d ow n pa y m e nt
con stru ctio n of hou sin g uni ts. the 1 st

3 r d in sta llm e nt, re m a inin g 20% a fter co m ple ting

2 n d in sta llm e n t 40 % a fter co m ple ting 7 5 % of
Payment Cost Summary
Total cost of house by using latest technology: 120,000 US$
Customer down payment as advance 20% = 24,000 US$
1st Installment 20% = 24,000 US$
2nd Installment 40% = 48,000 US$
3rd Installment 20% = 24,000 US$
_______________
Total Amount = 120,000 US$

Business Presentation
INVESTORS FOR OUR PROJECT:
Al Saad Group housing project is one of the big
housing project and we invite local Saudi investors
and foreign investor to invest in our housing
project.
Al Saad Group appoints Al Rajhi Banking &
Investments as a custodian of the project.
Municipality of Saudi Arabia supporting both Saudi
investors and foreign investors who come forward
to invest in Saudi Arabia Housing sector and
increase the level of housing complex.
This project will be register with SAGIA (Saudi
Arabian General Investment Authority).

Business Presentation
EXAMPLE:

To build a house unit, the followings are needed.

i) Land.
ii) Material and Labor charges.

Size of land in square meter = 500 Square meter

Cost of 1 Square meter of land = 173 US$

Therefore the total cost of land (500x173) = 86,500 US$

Material and labor charges to construct a house on this land = 60,000 US$

Therefore the total Cost of the house = 146,500 US$

Profit from each housing unit (40%) = 58,600 US$
Total turn key cost = 205,100 US$

• When the customer will pay 20% down payment as advance of turn key key cost value of
house unit during signing the agreement in this way we are getting
getting 41,020 US$.

• Since we have the 20% advance of the house unit (41,020 US$) and the material and
labor charges to construct a house on the land is 60,000 US$, it means we need only
18,980 US$ (60,000-
(60,000-41,020=18,980).

• Therefore we need investment of only remaining 30%-

30%-35% of total labor & material cost.

Business Presentation
Al Saad Group Housing Project Success features &
benefits:
The benefits that keeps Al Saad Group (ASG) housing project different from
other construction companies in the region & making the project successful
are as follows:
Having a good idea for the project execution.
Having 30 lands in 26 different cities, which is a major benefit of the
project.
Latest housing technology & method to built the housing units.
Association of Al Rajhi Banking & Investment Corp. in the project and
appointing them as custodian of the project.
Holding good name in Saudi market and having good sales & marketing
team.
Having good contacts with Saudi government officials in different regions
of Saudi Arabia, who urgently needs housing quarters for their employees.
In talks with Saudi government sector for the order of more than 7,000
housing units, Medical Sectors for 1,000 units, Military sectors for 1,000
units and many more.
Having local reputed Saudi investors, ready to invest in our housing
Business Presentation
project.
 Cement Plant Project
Cement Plant in Kingdom of Saudi Arabia

Cement Plant in Sudan

Business Presentation
 Other projects

Real Estate Projects in Central province and

Eastern province of Saudi Arabia.

Housing Project in Sudan

Many other real estate investment and

development projects.
Business Presentation
 Contact Us
Al Saad Group for Real Estate
Investment & Development.
Tel: +96612062771
Fax: +96612062735
P.O. Box 27546, Riyadh 11427
Kingdom of Saudi Arabia
Website: www.asgdv.com

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Question & Answers

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 Thank You
Thank you for attending this session and
sparing your precious time with us.

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