Two Saudi and Kuwait companies have agreed to create a joint venture that will channel nearly SR8 billion ($2.2 billion) into land, housing and other projects in Saudi Arabia, newspapers in the Kingdom reported.
Al Fozan Holding of Saudi Arabia and Kuwait's Almabani said they have already launched business with the purchase of a 390-sq-metre plot of land just north of the capital Riyadh for SR 1.4 billion ($ 373 million) to construct a shopping mall and a hotel.
In a joint statement carried by Al Jazirah and other Saudi newspapers, the two firms said their new joint venture would be involved in purchasing land and construct, operate and manage shopping malls, housing complexes, hotels and tourism resorts.
"The new company will invest SR8 billion in projects in Saudi Arabia in the next five years," the statement said.
It said the projects include the construction of four major shopping malls in Riyadh, Jeddah and in east Saudi Arabia, adding that more such projects would be set up in other cities at a later period.
"The high economic growth in Saudi Arabia has largely boosted business for companies at a time when the Kingdom is recording steady population growth that requires the construction of large service utilities…this has opened up massive investment opportunities for us," Al Fozan chairman Abdullah Al Fozan said.