Shuaa closes first tranche of Saudi fund

Shuaa Capital Saudi Arabia has closed the first tranche of its Shuaa Saudi Hospitality Fund I with 900 million Saudi riyals ($240m) of commitments from regional, institutional and individual investors, it said in a statement yesterday.

The closed-end fund plans to develop and own 17 hotel properties, furnished apartments, and resorts across Saudi Arabia.

Shuaa Saudi Arabia expects to raise a further SAR1.1 billion in the second and final closing, it said in an emailed statement.

"The final closing of the Shuaa Saudi Hospitality Fund will be held as soon as remaining commitments are finalised, after the summer holidays interruption," Iyad Duwaji, chairman of Shuaa Partners said in the statement.

Omar Al Jaroudi, Chief Executive Officer of Shuaa Capital Saudi Arabia, said: "We have structured this unique fund to allow the investors to benefit from the extraordinary growth potential of the hospitality sector, the real estate sector, and also from a 20 per cent ownership in the Saudi Hotel Management Company."

Selim El Zyr, President and Chief Executive Officer of Rotana, said: "Shuaa Saudi Hospitality Fund I offers a unique opportunity for Shariah-compliant investors to access a dynamic and fast growing sector. There is a shortage in modern branded hotels in the Kingdom especially when compared to the booming tourism industry. Our objective is to develop and manage international quality hotel properties which will cater to the needs of the local and regional market, the international traveler and the niche markets. The Rotana subsidiary in Saudi will have exclusivity on all the Rotana brands in the kingdom."

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