RIYADH: Alshoula Holding and Bayt Al-Mal Investment yesterday signed an agreement with Awan Real Estate Investment & Development Company to implement a massive real estate project (Arqa) worth SR7.5 billion in Riyadh.
Speaking to reporters after signing the accord, Prince Abdul Aziz bin Mishaal, CEO of Alshoula Holding, said the effect of the global economic crisis on Saudi Arabia’s real estate sector would be very limited.
“Our company’s decision to go ahead with new projects reflects its confidence in the national economy,” the prince said. He disclosed plans to establish another real estate project in the Eastern Province.
He praised Custodian of the Two Holy Mosques King Abdullah’s economic reforms and said those reforms encouraged many Saudi and foreign businessmen to invest trillions of riyals in the Kingdom.
Spreading over an area of 2.348 million square meters, the project will have 3,350 commercial shops and 1,380 housing units designed to meet the requirements of Saudi citizens. It will also have 97 palaces. Residents of these housing units will be provided with recreational facilities.
Prince Abdul Aziz said the new financing and real estate development coalition was formed after conducting detailed field studies and considering the expertise of its partners.
“Many projects are delayed due to lack of finance and we have formed this coalition to fill that gap,” the prince said.
Suleiman Al-Qamlas, chairman of Bayt Al-Mal, said investment in the Kingdom’s real estate would increase in the coming years. Riyadh alone requires 5.5 million housing units by 2020 as it needs 145,000 houses annually while Jeddah requires 18,000 new housing units annually. He estimated real estate financing in the GCC countries at about $750 billion and real estate loans at nearly $1.3 trillion.
Abdullah Al-Fowzan, director general of Awan, said the continuous growth of Saudi economy would increase the progress and prosperity of its citizens and enhance their capability to purchase houses.
