JEDDAH, 22 December 2004 — Nakheel, the premier property developer in the United Arab Emirates (UAE), is entering the Saudi Arabian real estate market by establishing a joint venture enterprise with MBI International and Partners, an international hotelier, agro business and real estate development and investment company, which also owns and operates luxury residential developments in the Kingdom, Middle East and Europe.
The new company, “Nakheel Saudi Arabia”, will spin off several real estate development and financing companies in the Kingdom and elsewhere in the GCC and the Middle East to provide, finance, housing and securitization to customers from all over the region. The company is to be incorporated, as a joint stock company headquartered in Riyadh with an authorized share capital of SR1 billion.
Sultan Ahmed ibn Sulayem, executive chairman, Nakheel, said: “Nakheel is expanding its investments in the Arab world, inspired by the directives of Sheikh Mohammad ibn Rashid Al-Maktoum, crown prince of Dubai and UAE Defense minister, to promote pan-Arab business cooperation. The joint venture is an amalgamation of core competencies of two leading players in real estate development and investment in the region. This alliance is a result of the extensive analysis of the dynamics of the sector in Saudi Arabia and elsewhere in the region, to identify the potential of this partnership to contribute to the overall development of real estate in region”.
He added that “This partnership will realize the utilization of Nakheel’s expertise and techniques of conceiving and executing mega projects to inject more vitality into the already vibrant market in the region. The new company is positioned rightly to offer the full value chain services in the real estate sector through offering innovative products and services in real estate finance, securitization and insurance services.”
The strategic union of the two giants in real estate development comes at a time when the property development market in the region is at its most buoyant helping the sector in Saudi Arabia and the UAE. The joint venture would become effective in the next few months, with the realizing of this partnership being supported by the assets of Nakheel and MBI International and Partners, which is valued at more than SR50 billion.
Mohammed ibn Issa Al-Jaber, chairman, MBI International said, “The Kingdom of Saudi Arabia is witnessing an enormous boom in the development of real estate. MBI International and Partners have been at the forefront of developing luxurious residential compounds, hotels and golf courses in Saudi Arabia, the Middle East and Europe. This tie up with Nakheel will certainly contribute to the supporting of the real estate developments in Saudi Arabia and the region and addresses its need for modern cities and housing, by enabling Saudis and Middle Easterners in owning their dream homes through an easy process and a competitive package.”
MBI International and Partners, is a $3 billion company with annual revenues of $1.7 billion with over 9000 employees worldwide, with interests in Middle East, Europe and the United States.
Nakheel is involved in a variety of new landmark developments in Dubai which include The Palm, The World, Jumeirah Islands, The Gardens, Ibn Battuta Shopping Mall, Jumeirah Lake Towers International City, Discovery Gardens, Lost City, Jumeirah Village and the recently launched The Palm Deira.
