KSA-UAE agreement to develop Saudi real estate 'hotspots'
The agreement will allow Jabal Omar Development Co and Shuaa Capital to "create and manage" real estate funds across centrally located areas in Saudi Arabia
Saudi Arabia's Jabal Omar Development Company (JODC) has teamed up with a UAE-based financial services firm to launch and manage real estate investment vehicles in the kingdom.
Shuaa Capital and JODC signed a memorandum of understanding (MoU) to further their partnership.
The MoU follows a similar memorandum signed between JODC and ADFG, Shuaa's largest shareholder, through which both firms would seek to collaborate and form partnerships for projects in Makkah.
JODC and Shuaa will look to "create and manage a set of strategic real estate funds" that will focus on the development and expansion of centrally located "real estate hotspots" across the kingdom.
Shuaa Capital, through its subsidiary in the kingdom, Shuaa Capital Saudi Arabia (SCSA) has previously delivered hospitality properties in Jeddah and Riyadh, with developments in Dammam due to follow.
SCSA also recently announced the ground-breaking of a $373.25m (SAR1.4bn) mixed-use development in Wadi Al Hada, Riyadh.
Commenting on the agreement, JODC's chief executive officer, Yasser Al-Sharif, said: "We are delighted with the strategic partnership with Shuaa and the potential business that we envisage to develop together, given its track record and experience in real estate in the Kingdom of Saudi Arabia.
"This MoU demonstrates commitment to our strategy to build new strategic relationships with key stakeholders in the region."
Jassim Alseddiqi, chairman of Shuaa Capital, added: "Our established record in managing real estate funds and developments within the kingdom, coupled with Jabal Omar’s unique reputation and achievements in building prime mega developments, will help create a favourable and mutually-beneficial partnership model for delivering the highest quality developments and achieve returns for stakeholders."
JODC's flagship project is Jabal Omar, 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.