JEDDAH, 2 October 2004 — A Malaysian property development and management company, SP UIA, Sdn. Bhd., is offering four projects for investment. Datuk Haji Idris Haji Ibrahim, executive chairman, who is visiting Jeddah for the purpose with his son Mohammad Zakhair, chief operations officer, told Arab News on Thursday that of the four projects, one is already complete and ready for investors. This is a 22-story, 144-apartment building situated on freehold land in Kuala Lumpur, built at a cost of $20 million.
Idris said the plan is to sell the whole building or a major portion of it “at cost price.” Those who buy it can rent it out and SP UIA can manage it on their behalf if so desired. SP UIA, Sdn. Bhd is also controlling a piece of land, freehold, measuring 2,398 acres next to the aforementioned building. It is approved for more than 147 units and is open for investment.
Idris, whose father was born in Makkah, has visited Saudi Arabia numerous times as part of trade missions and for Haj and Umrah. He said investors from Japan, Korea, China, Taiwan and Singapore were showing a lot of interest in investing in Malaysia.
“As a person with long-standing relations with Saudi Arabia and sincere and serious feelings for the brotherly Saudis, I fervently wish to see Muslim investments grow in Malaysia,” he said.
Unfortunately, in the last 20 years he did not see an enthusiastic response in this regard, but things have changed in Saudi Arabia as well as the world, especially after 9/11. Now Idris has noticed that Saudis are showing increasing interest in business and investment opportunities outside Western countries.
“Malaysia offers all that is conducive to growth and development — peace, stability, infrastructure, liberal investment climate,” explained Idris, who was Malaysia’s ambassador to the United Nations in 1979. He is also active in social work and holds senior positions in national and international charity organizations.
The third project Idris is promoting owes its origin to the International Islamic University of Malaysia (IIUM). He said that the university, founded 20 years ago, has faculties for technical, medical, science, arts and culture, and engineering studies of a high standard. The university is 70 percent owned by the Malaysian government, and 30 percent by Organization of the Islamic Conference (OIC) countries. The university has room for 20,000 students, but at this time has only about 15,000, and even the 30 percent quota for OIC countries hardly reaches 10 percent.
However, now things are taking a turn, as international students are reluctant to pursue education at universities in the West. During a road show covering the Gulf and Middle Eastern countries, it was learned by university representatives that students from the region preferred family accommodation. “If this were provided, the number of students from the Gulf and the Middle East could increase,” Idris explained.
The university authorities turned to SP UIA to prepare accommodation meeting these requirements for students — both married and unmarried — and for staff and their families. The $53 million project comprises four buildings interconnected with each other — all 3 + 1 room apartments. These are under construction and will be ready for occupation in June 2007.
“We are looking for investors from Saudi Arabia. Since it is not freehold land, it can be leased out,” Idris said. “There are two types of long-term leases — 15 years and 20 years. We are looking to lease out the buildings to one company, a group or a consortium. By renting out the apartments, the annual return on investment can be at least 41.88 percent for the 15-year lease, and 66.88 percent for the 20-year lease,” he added.
He explained that the apartments would be partly furnished, except for the dining and living rooms. It is thought that renters would prefer to furnish those rooms in the style of their choice. “Moreover, after the students finish studies, they can donate the living and dining room furniture to homes for the elderly, the poor and the needy through the management,” Idris said.
The final project Idris has been discussing during his visit to the Kingdom concerns halal food products. “The Malaysian government is giving encouragement to make Malaysia a hub for halal products distribution throughout the world,” he said. “We own 200 acres of industrial land in Malacca, 135 km south of Kula Lumpur, where more than 100 factories can be set up. The market is the whole world and during Haj season ‘heat and eat’ food can become popular because of convenience.”
He added that since Muslims travel all over the world and look for halal food, hotels and restaurants could import from these factories.
Moreover, the United Nations supplies food during emergencies and natural disasters like floods, earthquakes and floods. If clean, well-packed halal food is available, there can be no chance of contamination. “We can build factories for Saudi investors,” Idris said.
