Heralding a significant development in the real estate sector, Rakisa Holding Company, Kuwait Finance & Investment Company, Gulf Finance House and Abu Dhabi Investment House signed a…
Heralding a significant development in the real estate sector, Rakisa Holding Company, Kuwait Finance & Investment Company, Gulf Finance House and Abu Dhabi Investment House signed a strategic agreement in Kuwait to launch several investment funds in the Prince Abdul Aziz Bin Mousaed Economic City. These investment funds will be pertinent to several economic sectors which the project is involved in, with total investments topping $2.9 Billion (10 Billion Saudi Riyals).
The various components include transport & logistics, down stream industries, mining, agriculture and food industries, infrastructure, education city, tourism development and housing.
Besides Rakisa Holding Company, the lead developer of the second economic city, the list of strategic founding members of the company include: Gulf Finance House (GFH), Abu Dhabi Investment House (ADIH), Kuwait Finance & Investment Company (KFIC), Tanmiyat Investment Group, National Investment Company, Al Abdulatif Group, Al-Rashid Group, Al-Qubaisi Group, BWC, Kanoo Group, Tanmiyat Group, Obekon Investment Group, PWC Logistics, Saudi Agricultural Group and others. A specified percentage will be raised through an IPO targeted towards Saudi nationals by the year end, as per the rules and regulations of the Saudi stock market, which is the regulating body.
Being the second in a series of new economic cities in the Kingdom of Saudi Arabia being planned by the Saudi Arabian General Investment Authority (SAGIA), the Prince Abdul Aziz Bin Mousaed Economic City is a key component in Saudi Arabia’s recent initiative to further develop its economy, generate regional growth and create employment opportunities for its youthful population. The new city will be developed at Hail in the Northern region of the Kingdom by Rakisa under the supervision of SAGIA, which played a major role in the successful launch of the project recently.
Introducing the project, Mr. Ahmed Abdul Aziz Al Tuwaijry, Managing Director of Rakisa Holding Company, said: “Rakisa is honoured to be developing this economically significant project in cooperation with a prestigious group of core investors – local, regional and international. Hail is one of the Kingdom’s most attractive regions in terms of economic growth potential and investment opportunities. The region offers a strategic location, moderate climate, well-established agricultural sector and the potential for large mineral resources waiting to be exploited.”
Speaking on behalf of Gulf Finance House, Chief Executive Officer and Board Member Mr. Esam Janahi, said: “The value proposition of the Prince Abdul Aziz Bin Mousaed Economic City centres around the development of a comprehensive transportation and logistics hub to take advantage of the region’s unique core strengths. Projects such as this create a rare niche for a diverse range of private sector investment opportunities. We are confident that, together with our partners KFIC, ADIH and Tanmiyat Investment Group, we will contribute to Rakisa’s efforts of creating global awareness about the project, and attract high value investors to the investment funds.”
Mr. Abdul Rahman Ali Al-Saeed, Vice Chairman and Chief Executive Officer of KFIC, said: “We are delighted to be working with Rakisa Holding Company and to be part of a prestigious core group of regional investors. This includes GFH with whom we are collaborating with, through Bayan Holding Company, on similar groundbreaking economic projects such as Jordan Gate, Royal Village and Royal Resort & Spa in Jordan.”
Stating that the unique structure of the development would ensure its success and enhance its attractiveness, Mr. Rashad Janahi, Chief Executive Officer of Abu Dhabi Investment House, said: “Covering an area of over 156 million square meters, the Prince Abdul Aziz Bin Mousaed Economic City will gain significant benefits from its unique multi-sector cluster-based development format, making it a very attractive investment option.”
The new Economic City will be divided into several primary clusters including the Logistics Centre, the International Airport, the Dry Port, the Agricultural Park, the Petrochemical Area, the Business Centre, the Mining Centre, the Down Stream Industries Centre, in addition to a comprehensive residential , entertainment and supporting services.
The company running the project has launched a “360 degrees of opportunities” programme since the foundation stone was laid down by His Majesty King Abdulla Bin Abdul Aziz, the Custodian of the Two Holy Mosques. This programme includes investment opportunities in transport, logistics, down stream industries, mining, agriculture and food industries, education and knowledge based services, entertainment and housing.
These opportunities were presented in association with SAGIA during a road show to regional and international investors in London, Barcelona, New York, Manama, Abu Dhabi, Kuala Lumpur, Mumbai, Seoul, Taipei; and today Kuwait is hosting these investment opportunities. The road show will then move on to Hong Kong, Shanghai, Beijing, Tokyo, Sydney, Sao Paolo and other stations in the last quarter of the year.
Prince Abdul Aziz Bin Mousaed Economic City is expected to generate significant spill-over effects by driving growth into the residential and commercial real estate sector and increasing the economic activity in the surrounding areas, and is expected to generate more than 30,000 job opportunities in its first phase.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
