The number of Saudi businessmen, who expressed their willingness to participate in the establishment of a company for real estate financing amounted to 114. They are expected to cover SR600 million ($160 million) of the new company capital. This figure will be equal to 60% of the company's total capital, which will hit SR 1 billion ($266 million). According to Asharq al Awsat newspaper, the founding committee of the company aims at completing the reminder of the capital through governmental participation. A meeting was already held in this regard with the Saudi minister of Finance, Ibrahim bin Abd al-Aziz al-Asaf, to discuss with him the mechanism of the governmental participation in the new establishment.
The head of the founding committee of the company, Abd al-Rahman al-Jarisi, presented to the minister, along with the representatives of Gulf International Bank (the financial advisor of the company), and the representatives of Booz Allen Hamilton (which prepared the feasibility study regarding the company), and with the attendance of Mansur al-Maymon, the general secretary of the Saudi Public Investments Fund, the essence of the feasibility study's results.
Al-Jarisi stressed the importance of establishment of real estate financing company in Saudi Arabia, due to the social and national dimensions it has.
He mentioned that the results of the study showed the company's need in governmental support during the first five years of its activity. The feasibility study also indicated that the Saudi population is increasing and expected to reach 40 million in 2025, while the average demand for housing through the next 25 years is expected to hit 160,000 units.
© 2005 Mena Report (www.menareport.com)
