Al-Khabeer Merchant Finance Corporation, a leading provider of  Shari’a-compliant financial products and services in Saudi Arabia, has unveiled plans to create a SR400 million ($106m) real estate fund for the benefit of Jazan Economic City projects.

Al-Khabeer has signed an agreement with Jazan Development Company in this regard allocating funds for the economic city projects.

Jazan Economic City is a 103-sq m mixed-use social, economic and agro-industrial development located along the Red Sea 60 km northwest of Jazan City, which is home to the Port of Jazan, Saudi’s third most important port on the Red Sea.

It is expected to generate around 500,000 direct and indirect jobs and emerge as a vital hub in the Red Sea coastline.

Farouq Fouad Ghulam, Al-Khabeer’s executive partner and head of asset management division, and Sheikh Saleh Mohamed Bin Laden, the vice president of Saudi Bin Laden Group representing Jazan Company, formally signed the agreement.

"Given today’s challenging economic times, we have become more selective of the property developments we fund. Jazan Economic City is a sound project which has the potential to become a major income generator for the Kingdom, which is why we are pleased to be included in its realization."

"The City is an excellent addition to our investment portfolio which will certainly contribute to further expansion of the KSA’s rapidly growing real estate market,” said Farouq Ghulam.

"It is noted that the public expenditure towards the fields of finance, insurance and real estate throughout the Kingdom reached nearly SR57 billion in 2007, representing a 4.1 per cent growth over the previous year."

"Thus these promising figures persuade the company to invest in real estate projects at the Jazan Economic City," Ghulam added.

Al-Khabeer is an Islamic financial and investment closed joint stock company licensed by the Capital Market Authority in Saudi Arabia.-TradeArabia News Service