Kuwait-based property developer Al Mazaya Holding has established a branch in Saudi Arabia with a view to developing three projects worth a total of US $1.06 billion (SAR4 billion) in the first year of its operation.
The new branch, Al Mazaya KSA, will operate in the kingdom as a Shari’a-compliant real estate development company with a paid up capital of US $668 million.
Through the new company, Al Mazaya plans to capture a sizeable share of Saudi’s booming property market.
Khalid Esbaitah, Al Mazaya managing director and CEO, said: “Al Mazaya KSA intends to develop three projects in Riyadh.
These projects will include the development of commercial and residential plots of land owned by KSA-based companies Essa and Ajlan, and will cover a building area of 150,000m2. These projects are expected to generate 20% returns during the five year ownership period.”
He said that the company also expected to develop a further 750,000m2 and that Al Mazaya KSA would take part in all real estate activities, including in the residential, office and commercial sectors, all of which were seeing a period of increasing demand in Saudi Arabia.
The latest development in the Saudi housing crisis saw the intervention of the government to address the problem in cooperation with the private sector.
The new approach aimed to provide affordable housing units for all social segments and to bridge the widening gap, as demand for housing is far outstripping supply. KSA currently needs 200,000 residential units at a total cost of $26.6 billion, as per the eighth development plan.
Al Mazaya projects in Kuwait include Al Maha Villas, Mazaya Villas, Al Roya, The View Point, 7 Zones and Kuwait Business Town. In Dubai its projects include The Villa, Dubai Healthcare City, The Icon, Sky Gardens, Towers at Business Bay and Al Liwa.
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