Firms sign MoU for the creation and management of a set of real estate funds
Shuaa Capital, the UAE-based integrated financial services group, and Jabal Omar Development Company (JODC), one of the largest publicly-listed real estate companies in Saudi Arabia, have signed an MoU to launch and manage real estate investment vehicles in the Kingdom.
In a statement, the firms said that the agreement comes in the wake of an MoU signed between JODC and ADFG, the largest shareholder in Shuaa Capital, to explore opportunities for collaboration and partnerships associated with new developments in Makkah and the rest of Saudi Arabia.
According to the terms of the MoU, both firms will seek avenues of cooperation towards the creation and management of a set of strategic real estate funds. These will be directed towards managing the development and expansion of centrally located real estate hotspots across KSA, the statement added.
Shuaa Capital has been successfully running a series of real estate funds and managing the development of prime projects in Saudi Arabia since 2008, through its subsidiary, Shuaa Capital Saudi Arabia (SCSA). It has already delivered hospitality properties in Jeddah, Riyadh and will soon be handing over another in Dammam.
Furthermore, it has also recently announced a $373 million mixed-use development in Wadi Al Hada, in the capital Riyadh.
“We are delighted with the strategic partnership with Shuaa and the potential business that we envisage to develop together, given their track record and experience in real estate in Saudi Arabia,” said Yasser Al-Sharif, CEO of JODC.
“This MoU demonstrates commitment to our strategy to build new strategic relationships with key stakeholders in the region.”
JODC is one of the largest real estate developers in the region, and one of the largest listed companies on the Saudi Tadawul Stock Exchange. It’s flagship project is Jabal Omar – a multiuse real estate megaproject that is within walking distance of the Grand Mosque of Makkah.
“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,” said Jassmim Alseddiqi, chairman of Shuaa Capital, about the partnership.
“The alliance between Shuaa Capital and Jabal Omar Development Company, is one of several planned ventures, aimed at securing a pole-position within Saudi Arabia’s growing economy, as part of the kingdom’s Vision 2030 transformation plans.”