RIYADH - RIYADH, the bustling capital of Saudi Arabia, will soon have another skyscraper and a landmark called Al-Faisalia 2.
Prince Bandar Bin Saud Al-Khalid, Chairman of Al-Khozama Management Co. Ltd. and Deputy Director-General of King Faisal Foundation, the owners of Al-Faisalia Tower, announced that the construction of Al-Faisalia 2 would start soon.
The demand for real estate in Riyadh is very high, which is evident from the scarce availability of property whether to rent an office space or an apartment throughout the city, he said.
"The hotel rooms is another area, where Riyadh needs expansion," he said.
Al-Khozama Management Company has planned to construct a new project, the expansion of Al-Faisalia Tower to be called as Al-Faisalia 2 and build in the same area. "Al-Faisalia 2 will be of same standard and level of the existing Al-Faisalia Tower."
It is believed Faisaliah 2 will come up at the existing site by demolition of old buildings to make room for the new project.
The 267-meter high and 30-floor Al-Faisalia Tower located at King Fahad Street was built at a total cost $320 million in 2000.
"Insha Allah (God willing) the construction of Al-Faisalia 2 project will start very soon," the prince told a press conference held to celebrate the fifth anniversary of The Globe, a unique and a glittering golden globe, which contains an elegant two-story restaurant and lounge. It was built at a cost of SR57 million on the top of Al-Faisalia Tower.
He said the number of people visiting The Globe narrates its success story. In the first year of its construction around 67,000 people visited The Globe. "The number of people, who visited The Globe reached a 500,000 mark this year", he said.
"I am glad to tell (that) we recovered all the cost of the The Globe within five years of its construction," the prince said.
A replica of The Globe made with 200 kilograms of Swiss chocolate and Italian golden dust specially imported from these countries was the point of attraction for viewers.
Musaed A. Al-Said, President of Al-Khozama Management Co. Ltd., present on the occasion, told the reporters that the good news is that Prince Salman, Emir of Riyadh, announced the abolition of ceiling on the maximum height of any building in the capital, particularly in the Olaya District.
"So, we shall capitalize on this new development and you can imagine how big Al-Faisaliah 2 will be because now sky is the limit," he said when asked about the size of the project.
Would Al-Faisaliah 2 be the tallest building in the Middle East Al-Said said "if the economic indicators suggest it is viable, we will be happy to do that."
Al-Khozama has signed a contract with a consultant company in Riyadh for a feasibility study for the construction of Al-Faisaliah 2, he said
On another note he said Al-Khozama Management Company will be transformed from a limited liability company to a public company by floating the company's SR2 billion capital for initial public offering (IPO) split into 200 million shares.
"There was a Ministerial Council Resolution allowing the Al-Khozama Management Co., Ltd to go public. This was approved by our management following which the company's SR2 billion capital will soon be open for public investments," he said.
He said it is up to the Capital Market Authority to fix a date for IPO, "which we hope will be very soon."
However, such type of IPOs should be launched only after careful study and analysis of the economic impact it would have on the market, he said referring to the present slump in the Saudi stock market.
By Shahid Ali Khan
© The Saudi Gazette 2007
