Dubai real estate firm Union Properties has announced it has signed an agreement to expand its footprint into Saudi Arabia.
The memorandum of understanding with Naif Al-Rajhi Investment Company will establish a limited liability company specialised in real estate investment and development in the Gulf kingdom, a statement said.
The MOU was signed by Ahmed Khalaf Al Marri, general manager of Union Properties, and Naif bin Saleh Al Rajhi, CEO of Naif Al-Rajhi Investment Co.
The statement said the agreement includes real estate management, the purchase of residential and commercial Assets, and the purchase of land for the purpose of commercial and residential development.
Al Marri said: "The Saudi market is one of the most attractive investment destinations, and signing this MOU with Naif Al-Rajhi Investment Company comes within our objectives to pursue new investment opportunities in the Saudi Real estate market that is witnessing a sustainable growth."
He added: "Signing this MOU comes in line with UP's expansion strategy within the Arab region that will contribute in increasing the investment opportunities and enhance mutual cooperation for the best interest of our shareholders."
Al Rajhi said that the company will develop a "distinctive real estate project" with the new UAE partner, details of which will be announced soon.
Union Properties said in March its board had proposed a 3 percent, or AED0.03 per share, cash dividend and a 5 percent bonus share issue for 2014.
It would be the company's first cash dividend since 2002, according to Thomson Reuters data. The company last issued bonus shares for 2013, a 5 percent issue.
In September last year, Union Properties announced it is planning to focus its efforts on developing the Motor City area as appetite returns for properties in more remote locations.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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