Beirut (APD) - Khobar-based Al Oula Development Company, a real estate and property firm, signed a memorandum of understanding (MoU) with Syrian Prime Minister Mohammad Naji Al Otari to establish a joint venture with a state-owned Syrian company. The firm aims to invest $440 million in Syrian real estate projects, the London-based al Hayat daily reported Monday.
According to the MoU, Al Oula will hold a 70% stake in the new company and the remaining 30% will be owned by Damascus-based General Housing Establishment.
Regional investors and Syrian partners in the recent past established several joint ventures for developing real estate and tourism projects in Syria. The regional investors in these ventures include groups such as Dubai-based Emaar Properties, Amman-based Kurdi Group, and Qatar-based Phoenicia for Tourism and Trade.
What distinguishes the new venture by Al Oula and the General Housing Establishment is its aim to develop real estate projects in rural areas surrounding Syrian cities.
The Saudi company will also establish an investment fund at a capital of $10 billion that will invest in different sectors of the Syria economy including the establishment of a real estate bank, the newspaper wrote.
"Through the new Islamic real estate finance bank, this joint venture brings a whole new perspective to real estate investment in Syria," sources told al Hayat.
Established in 2002, Al Oula focuses on real estate investment, development, third-party marketing, assessment and evaluation; infrastructure and land development.
Al Oula is currently developing Al Nakheel project on over 1.23 million square meters of land in Jeddah. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
