Emaar, The Economic City, the master planner of King Abdullah Economic City, has entered a formal partnership with Al Tahaluf, a Saudi‑American real estate joint venture, to develop two upscale villa neighborhoods in the Al Murooj district of the growing coastal metropolis. The deal was unveiled today in KAEC by EEC’s Chief Executive Abdulaziz Alnowaiser and Al Tahaluf’s Chief Executive Robert Hofmann.
Under the agreement, Al Tahaluf will acquire 340 residential plots along the Red Sea shoreline. Plot sizes range from 600 m² to 1,000 m², with built‑up villa areas spanning 400 m² to 600 m². The two new communities will be built in a style described as “tropical modernism,” introducing distinctive architectural villas to the Kingdom that blend indoor and outdoor living with resort‑level luxury.
The villas themselves are designed to have four to five bedrooms, generous glass fronts, lofty ceilings, shaded terraces, and lush, curated landscaping. Interiors will be open‑plan with gourmet kitchens. Each unit will include a two‑car garage spacious enough to fit an electric golf buggy, supporting eco‑friendly mobility across the neighborhood.
Al Tahaluf is a joint venture between K. Hovnanian subsidiary and the Hamad bin Saedan Real Estate Company of Saudi Arabia. K. Hovnanian, a U.S.–based homebuilder, will bring decades of lifestyle‑community expertise to the scheme, while EEC will lead planning and overall city infrastructure.
Strategic Timing and Market Context
This partnership comes at a strategic moment. In June 2025, the Saudi Cabinet approved new rules that will allow foreign nationals to own property in designated zones starting in 2026. That policy shift is expected to attract higher levels of international investment into coastal developments like KAEC’s Al Murooj district.
Abdulaziz Alnowaiser, CEO of EEC, noted that the agreement highlights KAEC’s steady transformation into a dynamic, future‑ready destination offering residential, commercial, and leisure options of high quality. He added that the deal signals meaningful private sector interest in KAEC as a preferred choice for homebuyers in Saudi Arabia.
Robert Hofmann, CEO of Al Tahaluf, said the company is “incredibly proud” to be joining KAEC’s next chapter toward becoming a luxury lifestyle destination. He emphasized the area’s dramatic setting and its proximity to attractions such as world‑class golf, wellness facilities, watersports, and pristine beaches. Hofmann also highlighted KAEC’s convenient links to Mecca, Medina, and Jeddah International Airport via the Haramain high‑speed railway, which will appeal to both local and overseas buyers.
Launch Plans and Timeline
Al Tahaluf aims to launch sales of these villas by late 2025. A formal unveiling of the architectural design is scheduled for Cityscape Global, a major regional real estate exhibition, later this year.
Looking ahead, the two communities form part of EEC’s broader vision to draw international capital and private sector engagement to KAEC. With its strategic position on the Red Sea, advanced infrastructure, and investor‑friendly planning, KAEC continues to strengthen its role in national development initiatives under Saudi Vision 2030.
Significance for KAEC and Saudi Real Estate
King Abdullah Economic City, launched in 2005, is Saudi Arabia’s flagship coastal megaproject. It spans roughly 173 km² on the Red Sea, north of Jeddah. Emaar The Economic City leads its development, including the port, the kingdom’s first privately operated maritime gateway. When complete, KAEC is expected to house up to two million residents, though the actual population remains modest compared to projections.
This fresh alliance with Al Tahaluf and the upcoming villa communities represent a milestone in KAEC’s long‑term growth. By delivering high‑end residential offerings and aligning with policies that ease foreign participation, KAEC aims to reinforce its position as a premier lifestyle and investment hub in Saudi Arabia under the Vision 2030 economic diversification agenda.
The collaboration between Emaar The Economic City and Al Tahaluf marks a significant step in KAEC’s drive to expand luxury coastal living options. Launching sales by the end of 2025, the project arrives at an opportune moment as foreign real estate access opens to the international market. The upscale villas, carefully designed and well‑connected, target affluent Saudi and global buyers seeking resort‑style living along the Red Sea. As KAEC pushes ahead with its development pipeline, the deal underscores its intent to become a thriving, investor‑favored destination in alignment with national ambition.
Image Credit – Emaar the Economic City
