Al Mazaya to set up $137m realty firm
Kuwait, January 16, 2008
Al Mazaya, a leading property developer in the region, will establish a real estate company with a capital of QR500 million ($137 million) to launch a series of mega projects in Qatar.
The Qatari market has great potential, and is in urgent need for projects varying from residential to commercial and tourism developments, said a top company official.
“The country is witnessing a wave of international investor inflow into the country and substantial investment into the tourist infrastructure that are occurring mainly on the shorelines,” said Salwa Malhas, senior vice president - business development at Al Mazaya Holding, regional leading property developer.
“We will set up the real estate company in alliance with other investors. Our joint book runners, Global Investment House and Qatar Investment House have finalised the IPO. Al Mazaya will commence its activities as an investment and business manager for the company,' she added.
Al Mazaya-Qatar will have 49 per cent for GCC, and 51 per cent for Qatar. The Kuwaiti contribution allocated the 49 per cent, with 39 per cent for Global, and 10 per cent for Al Mazaya Holding.
Khaled Esbaitah, managing director and CEO of Al Mazaya Holding and Omar Al Koka, global representative, have been named board members for Al Mazaya Qatar.
As for the Qatari input, the contribution of private and organisational firms was substantial. Malhas said that the board of directors meetings will be held soon to draw the strategic groundwork for the company’s performance, Malhas added.
The Qatar Government is allocating QR23 billion for infrastructure purposes, and plans to invest more than $130 billion to develop and renovate its wide range of infrastructure developments in the next five years.
With the level of money being pumped into the nation's growth, investment into the property sectors has grown exponentially with multi-billion dollar projects appearing onto scene such as the Lusail and the Pearl-Qatar among others.
Other companies have sought funding which has led to more banks being established to capture a chunk from the construction and property boom in Qatar.
But despite the property growth in Qatar, there is still a demand for diverse investment, as most of the current projects are targeting the high income groups, and the market is short of mega projects that cater to the needs of medium and low income groups, locals and residents.
Qatar is the world's largest exporter of liquefied natural gas, and GCC’s fastest growing country with a growth rate of 9.9 per cent.
The country recycles its surplus petro-dollar to develop its infrastructure and improve its tourism and services sectors. Currently Qatar is facing a shortage in residential units and inflationary pressures, which the government is trying to contain.-TradeArabia News Service