DUBAI, 7 February 2004 — Kanooz, the Saudi-based business group, has committed to investing in the housing sector in Pakistan. A memorandum of understanding to this effect was signed here between Walid ibn Hassan ibn Mohammed Al Saygh, president and vice chairman of Kanooz Group, and Pakistan’s Orient Group of Companies.
Hafeez-ur-Rahman Butt, chairman of the Orient Group, signed the deal on behalf of his company.
“The Kanooz Group wishes to utilize the professional services of Orient Group as advisers, consultants and joint venture partners in alignment with the terms of every project,” said Al Saygh speaking after the signing of the memorandum. “The company is initially looking at an investment of $100 million and this may go up, depending on the progress made on the ground.”
Kanooz Al Watan for Projects LLC is a business group with diverse interests including real estate, energy, communications, marketing and professional services. The group has also been involved in tourism, property, hotels and leisure-industry related projects.
Butt said the memorandum is a big step in the right direction. He said: “This is the first occasion in the construction industry of Pakistan that a foreign group has agreed to invest in housing and other real estate projects. This will go a long way in helping the country’s economy grow.”
Butt attributed this landmark development to the forward-looking policies of the present Pakistan government.
“Pakistan authorities, under the leadership of Shaukat Aziz, have realized the potential of such ventures and the incentives it will give to local players in the market,” he said.
The agreement he said, will facilitate a broad-based investment climate allowing the Orient Group to act as a conduit for Kanooz to invest in new and ongoing projects. He said that the projects that are to be taken up would also include hospitals and low-cost housing projects.
Kanooz Group is also one of the five companies that have bid for privatization of Karachi Electricity Supplies Corporation (KESC).
