As the countdown to Donald Trump’s inauguration begins, the Trump Organization, which specializes in developing luxury real estate and hospitality projects, ranging from hotels to luxury residential complexes and golf clubs, is increasing its presence in the Middle East, especially the Gulf countries.
With the increasing demand for luxury in the Gulf, the Trump Organization sees tremendous investment opportunities in the Middle East - specifically the Gulf - in order to enhance its presence and market value in light of the challenges it faces, especially in Europe and North America.
Two projects bearing the Trump brand were recently announced in Riyadh in cooperation with Dar Global, the owner and developer of the Trump Riyadh project and a subsidiary of Dar Al Arkan Real Estate Development Company in Saudi Arabia, bringing the number of projects bearing the Trump brand in the region to about 6 announced projects, namely: Trump World Golf Club - Dubai in cooperation with Damac in 2014, Trump International Golf Club in cooperation with Damac in 2017, Trump International Oman project in 2022, Trump Tower Jeddah project, and Trump Tower Dubai project, which is expected to be officially announced soon.
Eric Trump, Executive Vice President of the Trump Organization, revealed to CNN Economics that the Trump family's investments in the region are very special, especially since the region supports growth and aspires to provide iconic projects that redefine and consolidate the features of luxury.
The projects that were launched in both Oman and Dubai have achieved remarkable success and demand, which has been an important factor in driving investment in this sector forward.
Trump said that additional details will be announced soon regarding Trump Riyadh projects and the Trump Hotel Dubai, which will be officially launched soon, describing the design of the Jeddah Tower as one of the most beautiful ever, and which will begin construction next month, according to Ziad Al-Chaar, CEO of Dar Global, to CNN Business.
While the Trump Organization often owns the real estate projects it develops and carries its brand, it operates in the region under a hybrid model whereby it licenses the “Trump” name to external developers, which allows it to expand its presence with limited capital investment.
The Trump brand has a geographical presence around the world, as in addition to the US market, the brand is present in Canada, Panama, Scotland, Ireland, India, the Philippines, Indonesia, the UAE, Saudi Arabia and the Sultanate of Oman.
Trump said that it is difficult to measure the performance of the brand, but what is certain is that properties bearing the Trump brand are always the most expensive per square foot and have the highest return on investment.
Trump cited markets such as India and South America, attributing the reason to the high standards he works with in both developing and managing projects, which are in line with the brand’s luxury image and its long-standing legacy in this field.
Ziad Al-Shaar revealed that the price premium for Trump projects launched in Jeddah and Amman reached 25 percent compared to other projects in the same geographical area, in addition to the speed of sales driven by limited supply.
He added that the image of the Trump brand is an image of success, luxury and elegance, in addition to the psychological value that the brand provides to the owners of a small number of properties in the world, which adds a uniqueness.
Dar Global was originally established to establish and develop the international assets of the Saudi Dar Al-Arkan Real Estate Development Company, which has been listed on the Saudi Stock Exchange since 2007. Today, the company owns assets valued at $7.5 billion, according to Al-Shaar.
Ziad added that since its establishment 3 years ago, the company has been a company specializing in luxury real estate and properties bearing famous brands, and that projects have been launched in partnership with 14 brands.
The company listed on the London Stock Exchange last year and plans to expand its focus to include hospitality assets with the aim of buying or building hotels and selling them after a period of three to five years from start-up once its revenue streams stabilize. Target markets include Spain, Dubai, Maldives, Athens and London.
According to the company’s latest published reports until December 2023, total revenues reached $360 million with a gross profit margin of 41 percent.
The figures indicate that the company enjoys a strong financial position with cash reserves reaching $238.5 million with an estimated market value as of December 9, 2024, of $829.9 million based on a share price of $4.61.
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