Bahrain's Ministry of Housing has signed a major agreement with Diyar Al Muharraq, one of the country's leading urban developer, for the purchase of 3,100 residential units at its upcoming residential project.

The deal for the new housing units, which will be enrolled under the Ministry’s Social Housing Programme, was sealed by the ministry for BD276 million ($727 million).

The 1,175 million sq m land allocated for the social housing units is on the southern side of Diyar Al Muharraq, in close proximity to Diyar Homes.

As per the deal, Diyar Al Muharraq will undertake financing of all construction works for the project, its associated primary and secondary infrastructures and community centers with due support from Kuwait Finance House (Bahrain); key shareholders in Diyar Al Muharraq Project.

The Bahraini developer is likely to begin work at the site in October and hand over the residential units in December 2018.

The agreement was signed by the Minister of Housing Basim Al Hamer and the chief executive of Diyar Al Muharraq Dr Maher Al Shaer in the presence of the chairman of Kuwait Finance House (Bahrain) Ahmed Alaiban and top officials.

It was held under the patronage of the Shaikh Khalid bin Abdulla Al Khalifa, the Deputy Prime Minister and chairman of the Ministerial Committee for Construction and Infrastructure.

Shaikh Khalid said the agreement between the public and private sectors; two major players for achieving sustainable development, paves the way for similar partnerships in the near future.

He called upon the Ministry of Housing to form more such strategic alliances with the private sector, to meet the increasing housing demands.

More and more property developers would seek to be active participants in efforts towards the realisation of visions set by His Majesty King Hamad bin Isa Al Khalifa and the government of Bahrain under the leadership of the Prime Minister His Royal Highness Prince Khalifa bin Salman Al Khalifa and the care of the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, His Royal Highness Prince Salman bin Hamad Al Khalifa.

"This partnership affirms the private sector’s willingness to take on the responsibility of participation in the development of the local communities in which they operate," he added.

On the deal, Al Hamer said: "This is indeed a very important agreement as it is the largest agreement of its type for cooperation between the private and public sectors and will surely have far-reaching positive consequences for all the citizens of the Kingdom."

Minister of Housing stressed that these residential units in Diyar Al Muharraq will be offered for sale within the social housing programme at a cost in accordance of finance amounts granted by banks participating in this scheme.

"These units will be constructed according to the standards and technical specifications applied by the Ministry in all its housing projects. The project will also include all the related infrastructure and necessary utilities and community service centers," noted Al Hamer.

“This agreement is in accordance with the Ministry’s direction towards increasing the options of Social Housing Units available within the programme for those who wish to benefit from it, due to the success the programme has achieved within a short period of time,” he added.

Al Shaer said the location of the project is ideal for a residential area with integrated community service centers and recreational green park lands.

"This partnership plays a crucial role in helping the Housing Ministry to attract more real estate development firms to expand their possible scope of work, increase the available housing options and encourage more citizens to opt for this housing services alternative to speed up the waiting process for those on the lists of housing services beneficiaries at the Ministry of Housing," he added.-TradeArabia News Service