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30 November 2023

DI, Red House JV to manage, develop projects in Saudi Arabia

A joint venture agreement was signed in Dubai between Khalid Bin Kalban, Chief Executive Officer, DI; Mazen Beaini, Chairman of Red House SAL, and Musaed Al Sarra, Board Member of Red House SAL. (Supplied)

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By Staff

Dubai Investments (DI), listed on the Dubai Financial Market, has announced a 50:50 joint venture partnership with Red House SAL – a Saudi-Lebanese joint stock company, to manage projects and developments in Saudi Arabia.

The joint venture company will manage and operate mega, mixed-use real estate development projects across Saudi Arabia. The launch of the new company comes amidst burgeoning growth trends in the Saudi Arabia real estate sector, which is valued at more than SR1.3 trillion, and is expected to reach SR1.5 trillion in the next few years.

A joint venture agreement was signed in Dubai between Khalid Bin Kalban, Chief Executive Officer, DI; Mazen Beaini, Chairman of Red House SAL, and Musaed Al Sarra, Board Member of Red House SAL.

The new joint venture will begin operations with a project in Riyadh while other significant projects are in the pipeline. The project “Riyadh Investment Park”, which will be unveiled soon, will spread across approximately 11 million square metres and strategically located at the periphery of the Saudi capital.

To be developed in two phases, the Investment Park will encompass warehouses, commercial showrooms, labour amenities, offices and other logistics facilities similar to Dubai Investments Park [DIP], the largest integrated commercial, industrial & residential community in the region.

A new entity will be entrusted with the development and management of the Riyadh Investment Park project, as well as other future projects in the pipeline across Saudi Arabia. Dubai Investments will own 25 per cent stake in this new entity.

Kalban said: “The decision to launch a joint venture company in Saudi Arabia is a major step forward in our journey to expand our international operations. Saudi Arabia is a strategic market in our growth plans, and offers unmatched growth potential – especially in the real estate sector. We look forward to reinforcing our partnership with Red House SAL and exploring opportunities in Saudi Arabia over the medium to long term, leveraging each other’s strengths and resources.”

“We have set new benchmarks with our experience in developing and managing different real estate projects and happy to take this expertise to Saudi Arabia with this new entity. We will leverage our core competencies in integrated mega-project developments, through our projects in KSA,” added Kalban.

Beaini said: “The Kingdom of Saudi Arabia continues to spearhead the economic growth across the GCC and as one of the leading names in the regional real estate sector, we thought the time was opportune to expand our presence in the country.”

Red House SAL, a real estate company established in Lebanon since 2005, is specialized in real estate development and investment in selected projects across Mena region and emerging markets. It continues to grow its portfolio holdings and regional operations in Algeria, Cyprus, Lebanon and Saudi Arabia.