Deyaar ventures into Saudi property boom

Dubai-based Islamic real estate developer Deyaar said on Sunday it had set up a joint venture company in Saudi Arabia to tap surging demand for housing in the largest Arab economy.

Deyaar, an affiliate of Dubai Islamic Bank, did not say what stake it owned in the Saudi venture or how much it planned to invest in the kingdom's real estate market, which it expects will need 163,750 units each year to meet demand.

Saudi Deyaar's other shareholders are Saudi-based Arabian Arkan for Commercial Investment and Ibrahim Abdullah Abunayyan & Brothers, Deyaar, which complies with Islamic law banning interest on lending, said in a statement.

"The company will capitalise on the soaring demand for real estate in the kingdom," Deyaar said in a statement.

Saudi Deyaar would develop residential, commercial leisure and retail projects, beginning with one at the Golden Corridor district in Riyadh, the firm said.

Other UAE developers have also moved into Saudi Arabia, the world's largest oil exporter and home to about 24 million people.

Emaar Properties is the largest shareholder in Emaar Economic City, which began in late-2005 developing the Red Sea coast project known as King Abdullah Economic City.

Deyaar, which develops, rents and manages properties, said in September it was working on $7 billion worth of projects from Lebanon to Kazakhstan with cash from its 3.18 billion dirham ($866.9 million) initial public offering in May.

It said earlier this month it expected to clinch a $5 billion deal this year to build a township in India with Ansal Properties & Infrastructure Ltd. (Reuters)

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