ADC signs JD100 Million agreement with GAI

The agreement was signed by ADC's CEO and Chairman of the Board, Eng. Imad Fakhoury, and by GAI's General Manager, Dr. Mohammad Abdulmun'em As'ad.

According to the agreement, a new limited liability private shareholding company, with a capital of JD30 million, comprising ADC and GAI will be established for the purpose of implementing the project. ADC will contribute 35% of the stated capital, whereas GAI will provide the remaining 65%. The total estimated cost of the project is approximately JD100 million.

The new company will undertake the development of construction works for the project including residential and commercial units, and sports and leisure facilities. It will also be responsible for the sale and rent of the units and for attracting investment to the project. Work on the residential city will commence immediately and is scheduled for completion by 31/8/2008.

Eng. Fakhoury stated, 'The agreement with GAI is a good example of our efforts to bring the Public and Private sectors together. The residential city project is a major catalyst for the continuing economic development of the Aqaba Special Economic Zone and an attractive opportunity for new investors in the Zone.'

Eng. Fakhoury added, 'In its capacity as the only authority entitled to manage and develop lands, public utilities and infrastructure in ASEZ, ADC has chosen GAI to be its partner in developing this residential city due to GAI's distinct expertise in this field, both locally and internationally.'

Speaking for GAI, Dr. Mohammed Asaad said, 'This new residential city is a qualitative contribution to the real estate sector in Aqaba. It will include detached residential buildings that are equipped with modern services and recreational facilities that meet the needs of Al Qasabah city's residents.'

Dr. Asaad went on to say, 'There is no doubt that the demand for high quality residential units will increase in the near future due to the growing interest from investors and international companies in Aqaba. Over the last few years we have witnessed a rapid growth in the number of tourist, infrastructure and educational projects, which has already driven demand for this kind of project from investors and employees relocating to Aqaba. The residential city will be a new and unique model that will incorporate everything that a resident in Aqaba will require - high quality housing, shopping centers, and tourist and entertainment facilities all within 145,000sqm of land. Greenery will also be allocated an area equal to 2/3 of the built-up land.'

GAI had signed a memorandum of understanding with ADC in February 2006 after which numerous meetings between the two parties ensued and resulted in the drafting of this agreement.

The project will be implemented in accordance with the studies, technical and engineering layouts, general design, action plan and project timeline that have been prepared by renowned international engineering offices.