Shuaa Capital, the UAE-based integrated financial services group, and Jabal Omar Development Company (JODC), one of the largest publicly-listed real estate companies in Saudi Arabia have signed an MoU to launch and manage real estate investment vehicles in the kingdom.

The agreement comes following the recent MoU between Jabal Omar Development and ADFG, the largest shareholder in Shuaa Capital, to explore opportunities for collaboration and partnerships associated with new developments in Makkah and throughout Saudi Arabia.

This deal will see both Shuaa Capital and Jabal Omar Development seek avenues of cooperation towards the creation and management of a set of strategic real estate funds directed towards managing the development and expansion of centrally located real estate hotspots across Saudi Arabia.

Through its well-established subsidiary Shuaa Capital Saudi Arabia (SCSA) licensed by the Capital Market Authority since 2008, Shuaa Capital, has been successfully running a series of real estate funds and managing the development of prime projects. It has already delivered hospitality properties in Jeddah, Riyadh and will soon handover another one in Dammam.

It also recently announced the ground-breaking SR1.4-billion ($373 million) mixed-use development in Wadi Al Hada in capital Riyadh.

Jabal Omar Development Company is one of the largest real estate developers in the region and one of the largest listed companies in the Saudi Tadawul Stock Exchange. Its flagship project, Jabal Omar, is a multi-use real estate mega development project within a walking distance of The Grand Mosque of Makkah.

Jabal Omar CEO Yasser Al-Sharif said: "We are delighted with the strategic partnership with Shuaa and the potential business that we envisage to develop together, given their track record and experience in real estate in Saudi Arabia."

"This MoU demonstrates commitment to our strategy to build new strategic relationships with key stakeholders in the region," he noted.

On the partnership, Shuaa Capital Chairman Jassim Alseddiqi said: "Our established record in managing real estate funds and developments within the kingdom, coupled with Jabal Omar’s unique reputation and achievements in building prime mega developments, will help create a favourable and mutually-beneficial partnership model for delivering the highest quality developments and achieve returns for stakeholders."

"The alliance between Shuaa Capital and Jabal Omar Development Company, is one of several planned ventures, aimed at securing a pole-position within Saudi Arabia’s growing economy, as part of the kingdom’s Vision 2030 transformation plans," he added.-TradeArabia News Service