Al-Oula in Syria
Ayedh Farhan Al-Qahtani, the President of Al-Oula Development, stated that his company is investing in Syria through the establishment of a joint-stock housing real estate company between the Syrian government and Al-Oula Development with a capital of US$ 432.9 million to develop the various Syrian real estate projects.
A Memorandum of Understanding was signed between the Saudi Al-Oula Development and the Syrian government represented in the General Organization for Housing during a ceremony that took place in Syria recently.
The Signing Ceremony was attended by the engineer Mohamad Naji Atri, the Cabinet’s President and a number of ministers, in addition to the Secretary General of the Cabinet’s Presidency, the Governor of Damascus Countryside, the Manager of the Investment Office, the General Manager of the General Organization for Housing and a number of businessmen.
The Memorandum was signed by Ayedh Al-Qahtani the President of Al-Oula Development and Omar Ghalaounji the General Manager of the General Organization for Housing. The Memorandum stipulates that the management of the Company shall be the responsibility of Al-Oula, and this during the period of elaboration of the drawings and feasibility studies and until the management of the operation of the joint company and the projects that it will undertake.
Ayedh Al-Qahtani, the President of Al-Oula Development, mentioned that Syria took very important steps lately towards the economic reform, that it became the focus of attraction for the investors and enjoys a significant variety in all its sectors. He pointed out that Al-Oula Development will establish an Islamic bank to finance the real estate development projects in Syria.
Al-Oula deems that there are many motives to develop the random habitation regions, most importantly because they account for 40% of the population of Damascus city and countryside and the edification of all these regions is poor security-wise. The Company intends to build residential quarters equipped with services, utilities, and industrial and commercial stores with good specifications as per the studies.
They will be built in phases whether in Damascus or any of the other districts. Afterwards, the Company will establish independent regions to which people will be moved. The Company sees that the benefits of establishing these projects are numerous, notably they generate a demographic variety in a manner that reduces the social, political and security problems and improve the constructional appearance of the city, noting that these projects are beneficial to the State, the society, the individual and the investor.
He added that the works of the Company will include processing the regions of collective violations and the regions of random habitation, preparing the lands and coherent oasis, and specifying the form, type and terms of the company participating in the Articles of Constitution. Al-Qahtani confirmed that the regions that need to be developed and rebuilt will be specified during the next two months to provide sufficient studies about the residential, commercial and service projects that will be developed.
During the Signing Ceremony, Al-Oula gave a presentation on its major projects in Saudi Arabia and in Gulf generally, the most important of which being Al-Nakheel Project in Jeddah, Al-Shamiya Project that includes the development of the Sanctuary of Mecca region, and King Abdullah Economic City Project in Jeddah that is considered to be the biggest real estate project in the world.
It is determined that the two parties will constitute a follow-up committee to accomplish the establishment and declaration of the joint company in a way that meets the desired objectives of its establishment, and this within two months from the legalization of the Memorandum of Understanding by the competent authorities.
On his part, Omar Ghalaounji, the General Manager of the General Organization for Housing, highlighted that the selection of Al-Oula to establish such a company follows the ascertainment of Al-Oula experience and potentials in the real estate development as it established many successful real estate projects in Saudi Arabia and the Gulf, confirming the need of the real estate market for such a pioneer company.
He added that the company to be established is considered the biggest real estate company in Syria with a capital of US$ 432.9 million and aims at increasing the level of livelihood. The share of Al-Oula Development is 70% and the share of the General Organization for Housing is 30%.
Ghalaounji added that many violations were established in many Syrian cities, notably Damascus, and they are occupied by a significant number of citizens, especially in the entrances of the cities, which led to the emergence of quarters without a constructional system and lacking many major services, not to mention the social and economic problems arising therefrom and the major distortion in the entrances of the cities.
The new company will be the sole authority authorized to conduct the development for these regions that will be specified by a decision taken by the Cabinet’s President and also the investment of these regions to develop residential, tourist and services real estate projects for each region as per its nature.