By Andy Sambidge
Company plans to replicate its Dubai Investments Park in Riyadh; other major Saudi projects in the pipeline
Dubai Investments on Sunday announced a 50:50 joint venture partnership with RED House, a Saudi-Lebanese real estate firm, to manage projects in Saudi Arabia.
The joint venture company's first project in Riyadh will be to build an integrated industrial park along similar lines of Dubai Investments Park.
The new joint venture will develop other significant projects are in the pipeline, Dubai Investments said in a statement.
It said plans for Riyadh Investment Park, which will spread across approximately 11 million square metres and will be developed in two phases, will be unveiled soon.
The project will feature warehouses, commercial showrooms, labour amenities, offices and other logistics facilities similar to Dubai Investments Park, the largest integrated commercial, industrial and residential community in the region.
The launch of the new company comes amidst burgeoning growth trends in the Saudi Arabia real estate sector, which is valued at more than SR1.3 trillion ($346 billion), and is expected to reach SR1.5 trillion in the next few years.
Khalid Bin Kalban, managing director and CEO of Dubai Investments, said: "The decision to launch a joint venture company in Saudi Arabia is a major step forward in our journey to expand our international operations.
"Saudi Arabia is a strategic market in our growth plans, and offers unmatched growth potential- especially in the real estate sector. We look forward to reinforcing our partnership with RED House and exploring opportunities in Saudi Arabia over the medium to long term, leveraging each other's strengths and resources."
Mazen Beaini, chairman of RED House and CEO of the new entity, added: "The kingdom of Saudi Arabia continues to spearhead the economic growth across the GCC and as one of the leading names in the regional real estate sector, we thought the time was opportune to expand our presence in the country.
"We are happy to join hands with Dubai Investments , which has carved a niche with its pioneering and iconic developments in the region. We are thrilled to bring their expertise to the Saudi market."