Al Tahaluf commits to developing two premium residential communities along KAEC’s Red Sea coast

Introduction

Al Tahaluf, a Saudi–American joint venture between Hovnanian Enterprises (NYSE:HOV) and the Hamad bin Saedan Real Estate Company, is a leading developer of lifestyle-focused, world-class residential communities in Saudi Arabia. It has a track record of building more than 300,000 homes globally and developing over 120 km² of real estate across Saudi Arabia. Founded in 2011 and headquartered in Riyadh, Al Tahaluf is committed to delivering high-quality homes that meet international standards.

In line with its growth strategy, Al Tahaluf has signed an agreement with King Abdullah Economic City (KAEC) to develop two premium residential communities in the Al Murooj district. The agreement covers the acquisition and development of 340 residential lots across 266,586 m², introducing a new tropical modernist architectural style to Saudi Arabia.

 

Private sector partnership

Al Tahaluf identified KAEC as a strategic location for expansion due to its advanced infrastructure, Red Sea coastline, and proximity to key destinations such as the holy cities of Makkah and Madinah, and King Abdulaziz International Airport in Jeddah via the Haramain High-Speed Railway. This partnership provides Al Tahaluf with an opportunity to bring its expertise in lifestyle community development to the western region of Saudi Arabia.

With land sizes ranging from 679 to 1,480 m² and built-up areas (BUAs) ranging from 346 to 506 m² per unit, the new communities will feature four- and five-bedroom villas with resort-style living elements, including expansive glass façades, generous ceiling heights, shaded terraces, landscaped open spaces, and open-plan layouts that connect indoor and outdoor areas. Each villa will also include a well-appointed kitchen and a private two-car garage, with additional space for a golf buggy, supporting sustainable mobility and elevated living.

As a flagship destination, KAEC plays a pivotal role in enabling private sector growth and attracting foreign direct investment (FDI). The collaboration between Al Tahaluf and KAEC aligns with PIF’s broader efforts to create opportunities for private enterprises across its investment ecosystem.

 

Impact and value creation

The KAEC-Al Tahaluf partnership contributes to Vision 2030 by supporting economic diversification, enhancing quality of life, and enabling greater private sector participation in high-impact sectors. The development is expected to attract both domestic and international buyers, particularly following the Cabinet decision to allow foreign property ownership in designated zones.

The project also adds momentum to KAEC’s expanding development pipeline and reinforces its position as a premier coastal lifestyle destination.

Through initiatives such as the Private Sector Hub and Private Sector Forum, PIF continues to play a leading role in facilitating the sustainable expansion of private enterprises and driving Saudi Arabia’s economic transformation in line with Vision 2030.