Ernst and Young appointed as financial advisor for development of PABMEC

PABMEC:

The Kingdom of Saudi Arabia has been approaching the establishment of the six proposed economic cities for furthering the economic growth of the region in a very progressive manner by encouraging private sector initiative. The Saudi Arabia General Investment Authority is actively supporting and coordinating the creation of these special economic cities.

PABMEC is envisioned to be a state-of-the-art city focussing on Agro-related businesses, Real estate development, Industry, Logistics, and Enabling infrastructure.

Abdelkhaleq Ahmad, Partner - Transaction Advisory Services in Ernst & Young Saudi Arabia, says:

"We are excited to be working on this interesting and complex engagement. The strategy to develop economic cities will augur well for the Kingdom as it will increase employment and fuel economic development."

The sponsors of the project, Al-Mal Investment Company K.S.C.C., will develop enabling infrastructure comprising supporting facilities that will make the Project attractive to potential investors and tenants.

The enabling infrastructure will include Utilities (a water treatment facility, a district cooling plant, power plant, etc), Transport / passenger hub, Educational facilities (state of the art schools), Primary healthcare centres, and Residential and commercial areas in close proximity to the education and primary healthcare facilities.

Ernst & Young's scope of work:

Ernst & Young's scope of work includes provision of a range of advisory services including:

(1) Market testing of the proposed components;
(2) Refining and updating the business plan;
(3) Updating the economic and financial models;
(4) Assisting in the development of an overall operating model and a overall governance structure;
(5) Assisting in identifying potential partners that the operating company could approach for participation / involvement in various components of the city and;
(6) Advising on capital structuring options for the operating company.

Varun Dev Sharma, Ernst & Young's Global Client Services Partner for the M.A.Kharafi group, says, "Ernst & Young has assembled a multi-disciplinary multi-skilled team from our Kuwait and Saudi offices, which will be supported by subject matter experts from our Infrastructure Advisory, Location Advisory and Real Estate, Hospitality and Leisure Advisory teams to execute this engagement. The relationship with the M.A.Kharafi group is one of the most important for us in the region and we are committed to ensuring that the engagement is delivered to world class standards."