Al Akaria, a leading Saudi real estate development company, has announced plans to set up a new contracting and building construction works company.

The company move comes following regulatory approval from the Ministry of Commerce and Investment.

To be based in capital Riyadh, the new firm, Saudi Real Estate Construction Company, will start operations with a capital of SR100 million ($26.6 million) consisting of 10 million common shares with par value of SR10 ($2.6) each, said Al Akaria in a statement to the Saudi bourse, Tadawul.

Al Akaria has subscribed for 60 per cent of the shares in the new company, while Kaya Homes is targeting the remaining 40 per cent stake.  

Once operational, the new entity, Saudi Real Estate Construction Company, will focus on building construction and maintenance on a commercial basis.-TradeArabia News Service