Companies sign agreement to explore opportunities for collaboration, partnerships in real estate development within Makkah and across Saudi Arabia
ADFG and Jabal Omar Development enter strategic partnership
Abu Dhabi Financial Group, which manages more than $6 billion in assets, and one of Saudi Arabia's largest traded real estate companies Jabal Omar Development will explore opportunities for property development in the kingdom to expand their footprint in the growing market.
The companies signed an agreement to look at potential for collaboration and partnerships in real estate projects in Makkah and across Saudi Arabia, ADFG said on Sunday. The strategic partnership will allow the two companies to collaborate on co-development, strategic planning, design and construction, as well as operations, lease and sale strategies, capital raising and structuring.
"This partnership opportunity is in line with ADFG’s strategy to expand its footprint into the Saudi market," said Jassim Alseddiqi, chief executive of ADFG. "ADFG, through its various platforms, will work with Jabal Omar Development to develop the most suited strategies for the master development and to optimise capital structure."
Shuaa Saudi, which is majority owned by ADFG, manages a number of real estate funds and has several hospitality projects in Riyadh and Jeddah, with a third project to be handed over in Dammam. Through its real estate platform, ADFG will advise on development management, design, project management and asset management as well as support the developments through its various financing and structuring platforms, it said.
Jabal Omar Development (JODC), which has a mixed-use real estate mega-development project in Makkah, is looking to develop other strategic areas of the city close to the Grand Mosque, including the reconstruction of poorly developed areas into projects that comprise hotels, residential and commercial facilities and shops, it said.
"The collaboration between the two parties will be a positive step towards the Kingdom’s desire to develop the Holy City of Makkah in line with the 2030 vision. JODC has an exciting pipeline of developments in the Makkah region and welcomes the opportunity to explore such projects with ADFG," said Yasser Al Sharif, chief executive of Jabal Omar Development.