23/03/2015 06:51 AST
Dubai Investments (DI), a leading investment company listed on the Dubai Financial Market, has announced a joint venture partnership with Red House, a Saudi-Lebanese joint stock company with expertise in real estate investments across Mena (Middle East and North Africa) region, to manage projects and developments in Saudi Arabia.
The joint venture company will manage and operate mega, mixed-use real estate development projects across Saudi Arabia.
The launch comes amidst burgeoning growth trends in the SR1.3-trillion ($346 billion) Saudi real estate market, which is expected to reach SR1.5 trillion ($399 billion) over the next few years, said Khalid Bin Kalban, the managing director and CEO of Dubai Investments, after signing the deal with Red House chairman Mazen Beaini and board member Musaed Al Sarra.
The new joint venture will begin operations with a project in Riyadh, while other significant projects are in the pipeline, he stated.
According to him, the company is gearing up for the launch of Riyadh Investment Park, a major project which will come up on a 11 million sq m area at a prime location in the Saudi capital.
To be developed in two phases, the investment park will encompass warehouses, commercial showrooms, labour 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.
Dubai Investments will be owning 25 per cent stake in this new entity, revealed Bin Kalban.
"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," he added.
Beaini said: "Saudi Arabia 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 Dubai Investments, which has carved a niche with its pioneering and iconic developments in the region. We are thrilled to bring their expertise to the Saudi market," he added.
Red House, a real estate company established in Lebanon since 2005, is specialised in property development and investment in selected projects across the Mena region and emerging markets.
It continues to grow its portfolio holdings and regional operations in Algeria, Cyprus, Lebanon and Saudi Arabia.
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