Jiwar to launch three new companies with a value of SR2.6bn

The first company specialises in the area of real estate development, whereas the second in the area of property finance and the third company is related to hotel management.

During the occasion, Dr. Saleh Al Habib, CEO of Jiwar Real Estate Management & Marketing, said: "This move comes amid our efforts to further promote our company's growth and to leverage the opportunities provided by the promising real estate sector in the region. We aim to expand our business to provide an integrated property group, with specialised divisions in sales, marketing, real estate development and finance, and hotel management."

Dr. Al Habib added: "We look forward to establishing a real estate development company with a value of SR500m, headquartered in Jeddah with branches across the main cities of the Kingdom. This company will focus in various areas, including engineering and design for the residential and commercial projects, conducting studies to identify the locations of the residents and commercial complexes, in addition to real estate development and management; as it is projected to commence its operations early next year."

Dr. Al Habib explained that the Saudi market has witnessed a significant growth in the area of real estate finance; as it valued SR4bn last year, and it is expected to reach SR50bn by 2010; while the value of construction projects is expected to reach SR500bn in 2010; as the real estate finance is one of the contributing factors in the growth and development of the real estate industry.

He added: "Despite the high size of real estate investment in the kingdom, the lack of real estate finance and mortgage has lead to a shortage in the real estate marketing cycle and a slowdown of demand in this vital sector. The real estate finance and mortgage law is expected to be issued during the next few months, which is considered a regulatory framework for this area in the kingdom. In this line, we aim to establish Jiwar Real Estate Finance with a value of SR2bn; as we completed the feasibility studies and identified some international companies characterised by an extensive experience in the area of real estate finance to become our technical partner".

"Moreover, a list of potential share holders has been completed for this company, which will focus on the area of real estate finance for the companies, organisations and individuals, in addition to financing the commercial complexes such as shopping malls and offices; as it will be headquartered in Jeddah with branches across the main cities of the kingdom; as it is projected to commence its operations early next year," noted Dr. Habib.

Al Habib concluded: "According to recent market studies, hotel management is considered as one of the promising investment sectors; as the number of visitors arriving at Saudi, especially for Hajj and Umrah, increased by 8.3% annually within the last five years; moreover, the number of hotel rooms of 4 and 5 stars category has increased by 2% annually over the past five years, which does not meet the growing demand in the market. Our company is characterised by an extensive experience in the area of hotel management; as it has undertaken the management of one of the Al Bait Towers during the last five years, before we transfer these activities to one of the regional companies in the area of hotel management. Our company is seeking currently to complete the procedures with aim to establish Jiwar Hotel Management through partnership with leading international companies in the area of hotel management for hotels of 3, 4 and 5 stars, in addition to leveraging the ideal locations for investing by BOT, with aim to develop and operate hotels, as this company will be headquartered in Jeddah, and it will cover the major cities in the kingdom."