ArabianBusiness.com - Middle East Business News
Friday, 27 November 2009 15:48 UAE time

YOUR DIRECTORY /

| Share |

Saudi developer Al-Oula to raise $800mn via sukuk

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Sunday, 19 October 2008
CAPITAL PROOJECTS: Al-Oula plans to build 4,200 units in Riyadh (pictured) with Egypt's Talaat Moustafa Group. (Getty Images)

Saudi developer Al-Oula plans to sell Islamic bonds worth 3 billion riyals ($800 million) within two years to help finance projects both in the kingdom and in the region, its top executive said on Sunday.

"We have a sukuk issue programme which is expected to start within one to two years... with a first tranche of 3 billion riyals," Abdulaziz Al-Duailej told Reuters.

"We have mandated financial advisers to get us a rating ahead of the issue," he said on the sidelines of a real estate conference in Riyadh.

Story continues below
advertisement

Launched in 2002, Al-Oula plans to independently build 20,000 housing units in Saudi Arabia by 2013 at a total cost of 20 billion riyals, Al-Duailej said.

Its subsidiary Al-Oula Investment plans at least another 20,000 units in the kingdom through joint ventures with UAE's Emaar Properties and Egyptian developer Talaat Moustafa Group, he said.

The project with Talaat Moustafa involves building 4,200 housing units in the capital Riyadh. Projects with Emaar are located in the Eastern Province, the Red Sea port of Jeddah and the holy city of Mecca, Duailej said.

He declined to give an estimate on the cost of the projects.

"These projects are under construction or under final design with the investment venture," he said.

Another subsidiary, Dubai-based Al-Oula International, is managing the firm's projects outside the kingdom.

"The main focus is the MENA region with emphasis on the Gulf market. We do have investments in the United Arab Emirates, Dubai, Umm Al-Quwain, Bahrain, Syria and Egypt and we are looking for other opportunities in the North African market as well," said Al-Duailej, declining to elaborate.

Al-Oula also owns a land acquisition and trading firm and plans a mortgage-financing unit.

It also plans to raise cash from an initial public offering but Duailej said current market conditions were not favourable for such listing.

"We are preparing the company for an IPO... We don't think the time is right now, we are thinking about a timeframe of three to five years from now," he said.

Saudi Arabia, by far the largest country in the Gulf Arab region, has a deficit of 400,000 housing units and will require 165,000 more units next year, with demand growing 3.5 percent per year, Al-Duailej said. (Reuters)

| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

SHARE PRICE CHECK

more » MIDDLE EAST MARKETS DATA

DMGI.MSM

Last Price:

0.50

0.000.00%

1 Mar 2009 09:00 GMT
(Market Closed)

RELATED LINKS

  1. Al Oula»
  2. Emaar Properties - UAE»
  3. Talaat Moustafa Group»

 EMAIL ALERTS

  1. Al Oula

  2. Emaar Properties - UAE

  3. Talaat Moustafa Group

  4. Islamic Finance


CURRENCY CONVERTOR

Tell us your story

READER COMMENTS

  1. Deal sought on Dubai World, Nakheel debts 17
    27 Nov ' 09 at 14:51
    Sultan,the news in the last couple of days has shocked the world all the more because we have just been hearing the "good news" for...   More  »
  2. Dubai debts crisis: latest news 05
    27 Nov ' 09 at 11:41
    Many of us believe in the great achievements of Dubai. But bleating passionate rhetoric in favor of the greatness of our City will not...   More  »
  3. UAE real estate market has now hit bottom - analysts 04
    27 Nov ' 09 at 14:40
    I agree media has become highly baised. We are fed with misleading positive news all the time which, as a result, drive investors into...   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM