The announcement came at a recent meeting of board of directors meeting.

With this expansion, the group aims at diversifying its revenue and investment resources, a move that will ensure shareholders great benefits.

This step is the result of extensive studies performed by specialized investment committees, said Managing Director Saleh Nasser Alsorayai.

"Our real-estate investment operations will include: Trading in land plots and development of residential, commercial or service complexes and industrial or commercial galleries and storage facilities for the purpose of sale, purchase or management on behalf of the Group or any third party," said Alsorayai.

"In addition, our activities will also focus on general contracting inclusive of construction, maintenance, refurbishment, restoration and demolition.”

Saleh Alsorayai attributed this step to the annual growth the Saudi real estate market is realizing (exceeding seven percent) driven by strong local demand on residential and commercial developments in addition to the growth in the hospitality industry, as projects in this field are valued at more than SR2 trillion.

"The Saudi property and construction sector offer the best investment opportunities in the region. More than 285 real-estate projects, valued at $260 billion, are currently in their execution or design phases across the Kingdom, aside from those that have been completed during the past few years," Alsorayai confirmed.

Support and logistic service operations to be undertaken by the group will include transportation, shipping, storage, customs clearance, and corporate mergers and acquisitions.

Alsorayai said: "Logistic services sector revenues exceeded $13 billion in 2010, and are projected to exceed $20 Billion by 2015. Being the largest GCC market, the Kingdom has a massive purchasing power, and thus a fertile ground for logistic service providers to prosper in the Middle East.”