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KFH-Bahrain Launches BD 200 Million Crafted Affordable Housing Project in Diyar Al Muharraq

At a press conference held on 28^th March 2011, KFH-Bahrain announced that the Board of Directors of Kuwait Finance House - Bahrain ( KFH-Bahrain ) resolved in a meeting held on 17 February, 2011, to build around 2,500 crafted affordable housing units within its flagship real estate project, DIYAR AL MUHARRAQ, one of Bahrain's biggest mixed-use residential urban developments in addition to injecting BD 100 Million in capital between KFH-Bahrain and its partners for the project.

The investment is a further indication of the resolve and commitment of KFH-Bahrain to invest in the Kingdom of Bahrain and of the confidence it places in the country's growth and prosperity.

Located on the northern shores of Muharraq, DIYAR AL MUHARRAQ is a unique self contained master-planned city that will provide a cohesive mix of residential and commercial properties with housing opportunities for over 100,000 people in 30,000 housing units, extending over an area of 12 square kilometres. KFH-Bahrain is the major investor in the project, the total investment value of which has been estimated at BD1.2 billion (US$ 3.2 billion).

Targeted for commencement of construction in May 2011, the mock ups of the crafted residential units will be completed by September 2011, while commencement of construction for the first phase units is expected in the beginning of the 3^rd quarter of this year. The designs have already been completed and invitations for tenders to construct the units have also been issued. The project, with a total cost estimated at around BD 200 million (in excess of US$ 500 million), will have housing units ranging from 3 to 5 bedrooms with provisions for an extra bedroom. Both the exteriors and interiors of the mock up homes are well planned, with designs offering a range of color and style making these homes very unique in design where the interior and décor designers will be consulted from the start of the project.

Commenting on the venture, Mr. Abdulhakeem Alkhayyat, Managing Director and CEO of KFH- Bahrain said, "The private sector has responded positively to the Government of Bahrain's call for more low-cost housing. Our role extends to both the development of projects and their financing. Bahrain faces a shortage of affordable housing for the lower and middle income segments of the market, a situation that is not expected to show rapid improvement in the foreseeable future. It is crucial that the public and private sector combine their efforts to accelerate the delivery of housing for these segments in the short to medium term."

"The Government social housing list currently has households on it that have been waiting for a long time, during which time the number has exceeded 53,000 and still showing an annual growth of around 4,000. KFH-Bahrain is constantly looking for ways to address, God willing, this very real need for crafted affordable housing. It is alarming to note that the void between supply and demand in housing is steadily increasing. Through the Diyar Al-Muharraq crafted affordable housing programme, KFH-Bahrain is trying to contribute proactively and go a step further in addressing the housing problem in the Kingdom," he concluded.

KFH-Bahrain will provide financing schemes for potential buyers however, other banks are welcome to provide more financing options. The sales of the housing units will commence by the last quarter of 2011, once the mock ups are completed so that prospective clients have the option to choose the interior design they prefer.

To avoid market speculation, the developing company will reserve a certain number of homes to introduce into the market with acceptable prices in the event speculation is introduced onto such homes in order to maintain the stability and avoid a sudden rise in prices.

Maintaining a closeness to the natural environment, the residential communities overlook parks and gardens with scenic sea views. Public and private schools, stores, masjids and other community facilities make the development completely self sufficient. For every group of 400 - 500 units, there will be a community center which will include day to day shops, play grounds, a masjid and other necessary amenities. The project is unique in that it will include a fully integrated modern infrastructure including roads, street lights and landscaping and will be within a walking distance from public water fronts, public beach fronts and public parks.

-Ends-

About Kuwait Finance House - Bahrain
Kuwait Finance House, Bahrain is a leading provider of Islamic commercial and investment banking services. Established in 2002 as a wholly owned subsidiary of Kuwait Finance House (Kuwait) -- an industry leader for more than 30 years -- KFH-Bahrain specialises in developing and bringing to the market the highest quality Shari'a compliant banking and investment products and services.

© Press Release 2011