Omar Al-Jaroudi told the Reuters Middle East Investment Summit in Riyadh the bank was waiting for regulatory approval for at least one placement and working on two or more more such issues.

"We have a couple of requests with (the capital markets authority) CMA," he said, declining to be more specific.

Shuaa Capital also was buying more land and expecting a second closing for a private equity hospitality fund acquiring hotels to be managed by Rotana Hotel Management Corp.

"We are in negotiations and soon hopefully have an  announcement (for a second closing), hopefully in three to four weeks," Jaroudi said.

But the total size would be lower than the 2 billion riyals ($533 million) initially planned and reach 650-700 million riyals due to the financial crisis with Shuaa now offering other investment models such as joint-ventures for land owners.

"I don't think the two billions are realistic," he said.

"Originally when we wanted to raise 2 billions the strategy was to own 100 percent and then to exit it. Now we changed the strategy," he said.

"Even if the amount we raise is less than 2 billions I think we will deliver the majority of our plans with this new strategy," Jaroudi said.

More land in the Red sea port city of Jeddah and also the eastern province was being bought for the fund, he added.

The investment bank also wants to launch a logistics funds, he said, declining to be more specific.

Shuaa Capital had increased its work force in the kingdom by 20 percent to around 50 staff as the overall business for investment bank was improving in the top oil exporter, he said.

The bank, whose parent firm is based in the United Arab Emirates, had opened an office in Jeddah and was planning another one in the eastern province, the source of most of Saudi's oil wealth.

"We need a team spread all over the place," he said.