Dubai developer Union Properties has signed a deal with Saudi firm Naif Al Rajhi Investments to develop projects in the Kingdom.
Through the deal, a limited liability company specialised in real estate investment and development in Saudi Arabia will be formed, the companies said.
The agreement also includes real estate management, the purchase of residential and commercial assets, and the purchase of land for the purpose of commercial and residential development.
The first project to be developed under the partnership will be announced soon, officials 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,” said Ahmed Khalaf Al Marri, general manager, Union Properties.
“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.”
Property developers have been flocking to Saudi Arabia after the government announced a decision to tax undeveloped urban land plots, most of which are held by wealthy individuals who prefer to hold them rather than develop them.
Recently Dubai Investments, a unit of state fund Investment Corporation of Dubai, announced a joint venture partnership with Red House Sal, a Saudi Lebanese joint stock company to operate in the Kingdom.
The JV, in which both firms will own a 50 per cent share, will manage and operate mega mixed-use real estate projects across the Kingdom.
Its first project will be an 11 million square metres development called Riyadh Investment Park, similar to Dubai Investments Park.