Kingdom key market for Burger King

Updated 07 June 2012
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Kingdom key market for Burger King

Continuing the rapid expansion of its restaurant network in the Middle East, the Burger King brand has opened its 65th restaurant in Saudi Arabia, in Riyadh. Located adjacent to Galleria Mall on King Fahd Highway, the new outlet is the largest Burger King restaurant yet in the Kingdom.
The restaurant was officially opened recently by Samer Khawashki, VP of Olayan Financing Company, whose subsidiary Hana International Company Ltd. is the master developer for Burger King restaurants in the MENA region.
Diners at the new restaurant, which accommodates 120-seated guests, can enjoy the world-famous fire-grilled burgers in an elegantly casual ambience.
The brand’s ‘Have It Your Way’ promise ensures that customers at the restaurant can have their meal choices personalized to suit their individual tastes and preferences.
“Saudi Arabia is a key growth market for the Burger King brand in the Gulf — a region where we have managed to expand our presence significantly in recent years. The Kingdom and the wider Gulf region will continue to be a focal point of our investment strategy in the Middle East,” Khawashki said.
The Olayan Group opened the first Burger King restaurant in the Middle East 20 years ago in Riyadh, and has since been steadily adding restaurants and new markets to its portfolio. So far, Hana International has developed more than 270 restaurants in the MENA region, with Olayan directly operating over 170 restaurants across 5 markets, including 65 restaurants in Saudi Arabia and 60 in the UAE.
“North Africa is also high on the agenda of Olayan,” said Khawashki. “There are today 22 Burger King restaurants in Egypt alone and early this year we expanded our operations into Morocco.”
The Burger King brand has emerged as one of the fastest growing Quick Service Restaurant (QSR) chains in the region, added Khawashki.


Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

Updated 23 April 2019
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Saudi Real Estate Refinance Co. plans up to $1.07bn sukuk sale this year

  • The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios
  • SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year

RIYADH: Saudi Real Estate Refinance Co. (SRC), modelled on US mortgage finance firm Fannie Mae, aims to issue up to 4 billion riyals ($1.07 billion) of long-term sukuk this year, its chief executive said on Tuesday.

The plan by SRC, a subsidiary of Saudi Arabia’s sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios from mortgage financing companies and banks to boost the Kingdom’s secondary mortgage market.

SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year, Fabrice Susini told Reuters in an interview.

“Our strategy is clearly to tap the market twice this year,” he said. “We are really looking at probably issuing something between ... 2 and 4 billion riyal that we may be issuing in two tranches.

He said SRC was looking at sukuk in the 10 to 15-year range, to help minimize refinancing risks. “Generally speaking we are trying to issue as long as possible,” Susini said.

He said the company was assessing whether it could also issue bonds in currencies other than the local riyal.

In March, SRC completed a 750 million riyal sukuk issue with multiple tenors, under a program that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.

“The rule of the game for us is, like many projects across the Kingdom, attract liquidity from foreign investors,” Susini said.

He said SRC had spent 1.2 billion riyals from its balance sheet buying mortgages from local mortgage financing companies and provided liquidity to these firms.

It has also signed initial accords with several commercial banks to acquire housing mortgage portfolios.

Saudi Arabia’s housing ministry is targeting the mortgage market to reach a total value of 502 billion riyals by 2020 from around 300 billion riyals now.

The government wants to increase activity in the real estate market as it moves to revitalize the economy and is taking steps to reform the sector as part of its 2030 reform plan.

It has been working with developers and local banks to counter a shortage of affordable housing — one of the country’s biggest social and economic problems. Saudi Arabia wants 60 percent of its nationals to own homes by 2020, up from 47 percent in 2016.

The size of real estate financing relative to its gross domestic product is 5 percent in Saudi Arabia compared to 69 percent in the United States, 74 percent in the United Kingdom and 43 pct in Canada, the housing ministry has said.

“The goal of SRC in this market was to make sure that we will be able to refinance at least around 10 percent of the market in 2020, and 20 percent of the market by 2028,” Susini told Reuters.