JEDDAH, 28 June 2005 — Jeddah Holding Company (JHC) has embarked on a major project to develop disorganized and poorly maintained residential districts in the central and southern parts of the city, press reports said yesterday.
JHC, a closed joint stock company, is currently planning to increase its capital from SR400 million to SR1.4 billion to implement the project, which is likely to bring about a face-shift for this sprawling business city.
Saleh Al-Turki, managing director of the company, said businessman Muhammad Sharbatly and his brothers had bought 60 percent of the company’s shares from its partners.
“The plans and studies for the new construction projects will be ready within two months,” Al-Madinah Arabic daily quoted Al-Turki as saying. He said the company would also present an application to the Commerce and Industry Ministry for increasing its capital.
JHC has already prepared a plan in coordination with the Supreme Commission for the Development of the Makkah Region to develop disorganized districts in Jeddah, the paper said, adding that the new construction projects would cover 4.3 million square meters on both sides of the old Jeddah-Makkah Road.
The project requires a large amount of money. But Al-Turki ruled out selling part of the company’s shares to the public to finance the project. At present the company has a paid-up capital of SR100 million, he said, adding that existing partners have been asked to pay SR300 million to complete the authorized capital.
“JHC is likely to follow the method adopted by the Makkah Construction Company (MCC) to develop Jabal Omar as the MCC took steps to win ownership of the land before starting the project,” Al-Madinah said quoting a source.
The Commerce and Industry Ministry approved Jeddah Holding Company in July 2002. The company is licensed to provide infrastructure, maintenance, operation and management services. Its activities will cover sewage water treatment, water desalination, refining, drinking water distribution, operation and maintenance of water networks, service facilities and tourist resorts.
The company is also licensed to hold shopping festivals, carry out tourism and hotel projects, construct housing and commercial complexes, open training institutes and establish trade agencies. Licensed for 99 years, the company’s capital is divided into eight million equal shares, each priced at SR50, and subscribed by 281 traders and businessmen and other citizens.