New Bahraini real estate giant Naseej will be created in December with a paid-up share capital of US $478 million (BHD180 million), according to a statement released last week.
The news comes just weeks after the Central Bank of Bahrain (CBB) blocked an attempt by the founders to launch a $663 million Initial Public Offering (IPO) for the company.
The IPO would have been the largest in Bahrain's history and the first in the GCC since the financial crisis hit global markets, but was postponed by the CBB due to "unfavourable market conditions."
According to the statement, Ithmaar Bank's co-CEO Mohammed Hussain said the company would not wait for the IPO to come to fruition and would meanwhile establish Naseej by itself.
"The Naseej promoter shareholders agreement, which was signed by the promoter shareholders, formalises our commitment to push ahead with what we believe to be an exceptionally promising opportunity," he said.
"We already have office space allocated at the Bahrain Financial Harbour and, with this agreement now in place, we are all but set to start."
Nassej is set to become the region's first fully-integrated real estate and construction company and will initially focus its attentions on solving the shortage of low-income housing and building materials in Bahrain.
"This signing ceremony takes us a significant step closer towards the establishment of what will certainly prove to be a truly pioneering venture," said Ithmaar Development Company CEO Mohammed Khalil Alsayed.
"Naseej will leverage its size to manage the entire spectrum of the construction and real estate business, from the initial planning stages, to the manufacture of building materials, design, project management, and marketing advisory services for developments as well as building, construction and facility management.
"In doing so it will create unprecedented synergies that will help provide, among other things, affordable housing solutions to the general public."
Present at the signing ceremony were representatives of the Social Insurance Organisation, Gulf Finance House, Abu Dhabi Investment House, Ithmaar Bank, Ithmaar Development Company, Palm Capital, Eskan Bank, Khaleeji Commercial Bank, Shamil Bank and BBK.For all the latest construction 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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.