Saudi developer Jabal Omar forms Jeddah subsidiary
Shamkhat, the new company in Jeddah, is a significant development for the kingdom's development giant, which predominantly boasts Makkah-based projects in its portfolio
Jabal Omar Development Company (JODC) announced it has formed a subsidiary in Jeddah.
The company's establishment marks a significant move for the Makkah-focussed development giant.
Shamkhat Development has been established as a limited liability company (LLC) that is a wholly owned subsidiary of JODC.
The firm has been established with self-finances initial capital worth $26,700 (SAR100,000).
Specialising in real estate development and investment, the company is part of JODC's strategic growth plans.
No financial impact has been caused by the establishment of Shamkhat, JODC said in a filing to the Saudi bourse.
JODC's flagship project, Jabal Omar, is an integrated master-development located close to the Holy Mosque in Makkah.
The company's hospitality portfolio includes Jabal Omar Marriott, Jabal Omar Hilton Suites, Jabal Omar Conrad, and the upcoming Jabal Omar Address Makkah hotel.
This August, JODC revealed plans to establish two specialised outfits providing post-construction services.
The first, a limited liability company, will be an asset management outfit covering hotels, resorts, and hospitality sector facilities.
JODC will own 90% of the company, and the self-financed firm's capital is $4m (SAR15m).
Meanwhile, the second company will operate in the commercial market management field.
Due to be established with $1.3m (SAR5m) capital, JODC will own 60% of the self-financed company.
This July, it was revealed that the former head of JLL Saudi Arabia would join Jabal Omar Development Company.
Jamil Ghaznawi's departure from the real estate services giant was announced in the same month.
Ghaznawi, who held his role at JLL for three years, took over as the chief commercial officer of Jabal Omar Development Company this September.