Mushaa Real Estate Company acquires real estate in Mecca and is negotiating buying land in Dubai

The deal is financed through the latest increase in the company's capital which reached KD30 million, and is still open to investors.

Global raised Mushaa's capital to KD30m by issuing 290 million shares at a nominal value of 100 Fils per share. The increase in capital is ongoing.

Mr. Omar El-Quqa, Executive Vice President at Global stated that the hotel consists of 159 hotel rooms in addition to full fledged hotel services that compare to five star hotels. Operations have already started which will bring in operational profits to Mushaa following the acquisition.

He added that the hotel units will be promoted using the 'Hisas Al-Mushaa System', which is a time share system compliant with the Sharia'a allowing the partial ownership of a real estate property for 20 to 50 years.

Mr. El-Quqa mentioned that the Global sponsored 5 year agreement signed between Mushaa and Baz Real Estate Modern Systems Company (Baz) will entail the latter to assist Mushaa in marketing Hisas Al Mushaa through Baz's network in the GCC and the region.

With regards to Baz expertise in this field, Baz began developing these products by presenting the Sukook program in cooperation with Munshaat Real Estate Projects Company, this program was implemented in Zamzam Tower in Mecca.

Baz later developed the time share concept to suit the region's customs and traditions as well as the teachings of the Islamic Sharia'a by creating the Hisas Al Mushaa system. Baz presented several projects in the region utilizing the Hisas Al Mushaa concept which includes the Copthorne Hotel in Dubai and the C Tower in Bahrain's luxurious Villa Mar project.

Mr. El-Quqa emphasized that the time share system is a highly profitable industry for developers of time share properties since their revenue base is derived from a variety of sources, including selling the timeshare units, consumer financing, and units rentals. Furthermore, once the timeshare contracts expire, the developers can realize the appreciation in their property values.

When compared to other types of residency such as hotels, the Hisas Al Mushaa system has an array of features. These features include affordability, as well as the ease to change or swap shares.

Mr. El-Quqa accentuated Mushaa's commitment to its strategic plan for the next five years which targets the ownership and development of five to seven real estate properties in the GCC which will be promoted using the Hisas Al Mushaa system. The company is currently negotiating buying land in Dubai to later develop it and sell it using the Hisas Al Mushaa system.