Egyptian developer Palm Hills plans to invest 3 billion Egyptian pounds ($561 million) with a local partner to develop land in Saudi Arabia, its first projects outside Eygpt.

Palm Hills had purchased 6.7 million sq m of land for residential and commercial developments in the capital of Riyadh and the coastal city of Jeddah, the company said.

"This represents the starting point for the company in executing its strategy for regional expansion," Palm Hills chairman Yasseen Mansour said in a statement.

The Riyadh development would be built on 3.7 million sq m and the Jeddah project on 3 million sq m, the company said.

Palm Hills would hold a 51 percent stake in a joint venture with a Saudi partner to develop the projects, it said, without naming the partner.

Palm Hills listed on Egypt's stock exchange in May after a $201.3 million initial public offering. The stock has fallen about 12.5 percent from its initial public offering price.

The projects will expand the total land bank of the company to 47 million sq m, it said. A growing population and an influx of expatriates as the economy of the world's largest oil exporter expands have driven up real estate prices in Saudi Arabia, investment bank Global Investment House said in March. - Reuters