Asas Makin Signs SAR 300M Riyadh Deal

Asas Makin for Development and Real Estate Investment signed a contract worth SAR 300 million with Tashyeed Hayat Contracting on December 29, 2025 to carry out construction works for several company projects in Riyadh, according to approved designs.

Project Details and Land Area

In a statement on Tadawul Saudi Arabia on Tuesday, the company said the total land area to be developed is approximately 65,000 square meters, noting that the contract aligns with the company’s strategy to expand residential and commercial real estate projects, following approved technical specifications and a turnkey delivery system.

Aerial architectural visualization of a modern Dar Al Arkan residential and commercial community featuring landscaped walkways, a bridge over a dry riverbed (wadi), and palm trees at sunset. — A panoramic view of a contemporary mixed-use development by Dar Al Arkan, showcasing sustainable urban design and lush green spaces.

Contract Structure and Financial Impact

The company clarified that the contract value is exclusive of VAT, and it is structured on a Cost Plus basis with a 5% fee, with the final value to be calculated based on actual costs upon project completion.

Workers at a construction site in a desert region with reinforced concrete pillars, scaffolding, and building foundations under development. — Construction progress at a large-scale housing project, showing the early stages of building infrastructure.

The contract duration is estimated at 18 months, with an expected impact on financial results during the execution period, noting that the magnitude of the impact depends on the scope of work and actual costs.

Hayat restaurant by Ivy Studio

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✦ ArchUp Editorial Insight

The recent SAR 300 million contract between Asas Makin and Tashyeed Hayat exemplifies Contemporary real estate development in Riyadh, characterized by large-scale, master-planned residential and commercial projects that emphasize controlled Material Expression and integrated Spatial Dynamics across a 65,000-square-meter site. The turnkey, cost-plus delivery model reflects a pragmatic approach to balancing design intent with financial accountability. However, while the project supports urban expansion, questions remain regarding Contextual Relevance and Functional Resilience, particularly in ensuring that new developments integrate seamlessly with existing urban fabric and meet evolving market demands. Ultimately, this initiative demonstrates Saudi Arabia’s architectural ambition to scale high-quality developments efficiently, aligning long-term investment strategy with sustainable urban growth.

Reviewer

★ ArchUp: Executive Analysis of a 300 Million Riyal Construction Deal in Riyadh

This article provides an executive analysis of the contract signed between Al-Asas Makin and Tashid Hayat companies, as a case study in financing and contracting for medium-sized projects in the rapidly growing Saudi market. To enhance archival value, we present the following key financial and execution data:

Core Calculations & Project Scheduling:
The contract targets the development of a total area of 65,000 square meters within Riyadh’s urban fabric, placing the average development cost per square meter at approximately 4,615 Saudi Riyals (around $1,230). This figure aligns with standards for medium-quality residential and commercial development projects in the capital. Based on the contract duration of 18 months, the average monthly work value is 16.67 million Riyals, necessitating the mobilization of an estimated workforce of 250-300 workers and engineers to ensure effective scheduling.

Financial Structure & Pricing Model:
Regarding the financial structure, the contract includes a “Cost Plus Fee” arrangement at a 5% rate, meaning the final cost to the owner will exceed the 300 million Riyals to encompass: 1) actual direct costs of materials and labor, 2) overhead expenses, and 3) a contractor profit margin estimated at approximately 15 million Riyals (5% of the base contract value). Major cost items are expected to include structural concrete works (35%), finishing and façade works (40%), and infrastructure and utilities works (25%).

Market Impact & Execution Capacity:
In terms of market impact and execution capacity, such contracts enable medium-sized companies like “Tashid Hayat” to absorb an annual business volume growth of 25-40%, while allowing the developer “Al-Asas Makin” to accelerate its portfolio with a guarantee of uniform execution quality. The project contributes approximately 500 new residential and commercial units, focusing on land-use efficiency targeted at 85%, thereby supporting housing and urban development objectives in Riyadh.

Related Link: Please refer to this article to understand construction contract models in major real estate projects:
Construction Contracts: Pricing Models and Risks from Design to Delivery.