Riyadh-based AlJadd Real Estate Development & Investment Company (AlJadd Real Estate Company) has signed an investment agreement with Bafarat Financial Consultancy for an amount of almost $800,000 (SAR 3mn). The agreement will aim to accelerate the real estate development firm’s regional and international expansion within the sector, it noted.
The strategic partnership also falls under Saudi Vision 2030 that wants to higher the private sector’s participation in the national economic growth and liberalisation, especially in a thriving sector such as development and real estate investment.
Commenting on the partnership, AlJadd Real Estate Comapny’s CEO Abdullah Al Jadani said: “It is with great pleasure that we sign this investment agreement with Bafarat Financial Consultancy – this is an outstanding investment that will have a great impact on the real estate sector in Saudi Arabia.”
He added that this agreement will pave the path for their national expansion which will include major cities in the kingdom, and is considered a “cornerstone to tap into new regional and international markets by the end of 2022.”
Moreover, he stressed on the company’s keenness to enter Arab and foreign markets, such as the UAE and Egypt, and from there to Europe and Africa within the company’s three-year plan.
On his part, Esslam Bafarat, CEO of Bafarat Financial Consultancy stated that this strategic investment is considered a key investment for their Q1 2022.
He added: “We commend its [AlJadd Real Estate Company] ability to build and develop innovative projects that are compatible with the population growth in the kingdom, and the modern changes that shape the main pillar of investment in this sector, and its support to achieve a qualitative leap into a new level of successful real estate projects.”
AlJadd Real Estate Company pointed out that its mission is to support, nurture, and enable the development of real estate projects while integrating innovative and creative technical solutions into the real estate sector. The organisation further stated, this vision is in place to keep pace with the recent developments introduced by the fourth industrial revolution, which allows KSA to pioneer in the real estate sector.
Saudi’s growing real estate market
Real Estate Development is the second largest contributing sector to the Saudi GDP after the oil and gas sector, and is associated with the growth of over 120 other economic sectors, noted AlJadd Real Estate Company.
As such, the real estate sector is Saudi Arabia is also equipped with firms that has the licence to engage in real estate funding. Amlak International for Real Estate Finance Company has recently renewed its $177mn (SR664 million) credit facility agreement with the SAIB – Saudi Investment Bank for a duration of one year.
As reported to Tadawul, the amendment in funds would allow Amlak to utilise the funds to facilitate the “company’s business and increasing its ability to finance its clients,” including individuals, businessmen, and corporates.
In line with achieving the targets of Saudi Vision 2030 that seeks to increase Saudi homeownership by 70% by the end of this decade, the kingdom’s Real Estate Development Fund has also launched initiatives to help real estate developers obtain funding from different financial institutions. The initiative is aimed at supporting real estate developers to increase the supply of housing units to meet the market demand.
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