Dubai Investments (DI), a major investment company listed on the Dubai Financial Market, has announced a 50:50 joint venture (JV) partnership with RED House SAL, a Saudi-Lebanese joint stock company with expertise in real estate investments across MENA region, to manage projects and developments in the Kingdom.

The joint venture company will manage and operate mega, mixed-use real estate development projects across Saudi Arabia. The launch of the new company comes amid burgeoning growth trends in the Saudi real estate sector, which is valued at more than SR1.3 trillion, and is expected to reach SR1.5 trillion in the next few years.

A JV agreement was signed in Dubai between Khalid bin Kalban, MD and CEO of DI, Mazen Beaini, chairman of RED House SAL, and Musaed Al-Sarra, board member of RED House SAL.

The new JV will begin operations with a project in Riyadh while other significant projects remain in the pipeline. The Riyadh Investment Park project spread across approximately 11 million sqm, which will be unveiled soon, is to be strategically located at the periphery of the Saudi capital.

To be developed in two phases, the Investment Park will encompass warehouses, commercial showrooms, labor amenities, offices and other logistics facilities similar to Dubai Investments Park (DIP), the largest integrated commercial, industrial and residential community in the region.

A new entity will be entrusted with the development and management of the Riyadh Investment Park project, as well as other future projects in the pipeline across Saudi Arabia. DI will own 25 percent stake in this new entity.

Kalban said: “The decision to launch a joint venture company in Saudi Arabia is a major step forward in our journey to expand our international operations. Saudi Arabia is a strategic market in our growth plans, and offers unmatched growth potential — especially in the real estate sector.”

Beaini said: “The Kingdom continues to spearhead the economic growth across the GCC and as one of the leading names in the regional real estate sector we thought the time was opportune to expand our presence in the country. We are happy to join hands with DI, which has carved a niche with its pioneering and iconic developments.”

RED House SAL, a real estate company established in Lebanon since 2005, is specialized in real estate development.