City Fanar shares sell out in record time

The 32,983 shares, worth US $153.4 million, are for the purchase and development of the 1.9 million square metres water front property of the project.

RIKAZ - Saudi Arabia's leading development company - predict that, through careful planning and a hesitancy to over subscribe, the massive demand for the limited shares will push the share price up by 5-7% over the next fortnight.

"The speed at which the shares sold out is a remarkable achievement for RIKAZ, and highlights the credibility of both RIKAZ, as the developer, and the project itself," said Sheikh Khalid H. A. Al-Ghatani, President and CEO, RIKAZ. "This achievement further illustrates the confidence that exists in the Saudi economy, specifically the Eastern Province, as well as investor confidence and appreciation of the clarity and professionalism that RIKAZ had employed when structuring the Musahamat."

The equity is subscribed within a real estate investment portfolio, in accordance with the real estate shareholding 'Musahamat' regulation, recently approved within a unique investment structure compliant with Islamic Sharia laws.

Although the majority of the project investment has come from all parts of the Kingdom of Saudi Arabia, 20% has come from neighbouring Gulf Cooperation Council (GCC) states.

"The fact that 20% of the investment has come from outside Saudi Arabia, proves that the project has substantial regional appeal," said Sheikh Khalid. "This shows that there is a market starvation for such a well planned mixed use development and also a renewed interest in real estate investment funds that are well structured."

City Fanar is one of the largest comprehensive development projects in Saudi Arabia's Eastern Province. It will offer state of the art amenities and a luxurious lifestyle. Located along the Khobar-Dammam Corniche, it will encompass 3.4 million square meters of usable Gulf of Arabia beachside land.

City Fanar will offer modern residential, commercial, educational, and leisure facilities. A main feature will be the 300,000 square meter environment-friendly artificial lagoon, the first and largest of its kind privately developed in Saudi Arabia. The lagoon will serve as a centre for a lifestyle in line with Saudi Arabian traditions and values.

"City Fanar will be a pillar of progress, and the landmark against which all others calibrate themselves. Traditional in its reliability, yet revolutionary in its being, City Fanar will honour the values of the old, while evolving with the changes of the new," added Sheikh Khalid.