Al Akaria Program Management Office (AK PMO)
The government of Saudi Arabia announced Vision 2030 to restructure KSA from oil-dependent to diversified economy. The government’s decision to develop tourism and attract more tourists to the country has led to massive investments in hospitality and infrastructure construction.
Meanwhile, as the population is expected to become 37 million over the next 10 years, the demand for residential construction is increasing, and the government has been promoting affordable housing schemes to resolve the current shortage of residential buildings. As the initiative of Vision 2030, National Transformation Program (NTP) 2020 aims to stimulate private sector participation and reduce public spending. It encourages to ensure greater private sector involvement, to increase revenue from non-oil sectors, and to promote domestic employment.
Even though the total value of awarded construction contracts per year has dropped over the past three years due to the decline in oil revenue, KSA’s construction industry is forecasted to grow at the rate of 4.8% between 2017 and 2020. The Kingdom’s efforts to improve and promote medical & religious tourism are expected to be translated into a boom in the construction sector, especially in the infrastructure, hospitality, and retail sectors. The projected population growth in KSA is increasing the demand for housing construction, and hence a rise of housing development is expected.
The Client, Al Akaria, is a well-recognized real estate developer and is considered one of the first developers in the country. Established by a royal decree in 1976, Saudi Real Estate Development Company (“Al Akaria” or “Akaria”) is known for developing one of the first and largest commercial developments in the region (Akaria1). Over the years, Akaria continued to develop residential and commercial complexes and infrastructure developments.
The most recent developed projects by Akaria are Akaria Plaza (2009), a 143,000m2 commercial complex located in Olaya Street and DQ Residences (360 luxurious residential units comprising of villas, duplexes and apartments) located in the Diplomatic Quarter.
Currently, Al Akaria is developing a mega-project that integrates entertainment, retail, office, hospitality, residential, healthcare and educational uses. Akaria’s development pipeline also includes hotel projects which are Sitteen, Aqeeq, Quortoba and Olaya, residential projects which are Remal, Narjes, DQ in Riyadh, KSA.
Accordingly, AHPM has been appointed as Program Management Office to assist Al Akaria in delivering their projects more efficiently and successfully. Consequently, AHMP set up the PMP is developed to provide a framework for the parties related to the projects to deliver design, procurement, and execution within a planned schedule and budget while satisfying safety, environmental, operational, commercial, quality expectations of Akaria.