Riyadh – Mubasher: The Saudi Arabian General Investment Authority (SAGIA) has awarded a licence to US-based consortium Global Business Ventures.
The licence will enable the US companies to start investing in housing projects in the kingdom.
This is “the first step in a planned multibillion-dollar, mixed-used development,” according to a statement by Global Business Ventures, which added that the deal could lead to establishing about 25,000 residential units, in addition to an area of 1 million square feet of commercial space in three locations north of the Saudi capital, Riyadh.
Global Business Ventures, which includes companies from the US and Saudi Arabia, is currently carrying out three real estate development deals covering a combined surface area of over 9.75 million square metres or about 2,400 acres.
The massive project is in line with the Saudi Vision 2030, the company said.
“In its efforts to ease licence procedures, SAGIA has extended the licence period for foreign investment from one year to a period of up to five years, renewable,” SAGIA’s governor Ibrahim Al-Omar said.
He described the programme as “unprecedented”, indicating that it will involve reforms that will unlock “an exciting range of opportunities for investors in the Middle East’s largest economy.”
Two international real estate companies, under the Global Business Ventures’ umbrella, will be responsible for the feasibility studies and site evaluation.
“The pre-development design process, led by GBV Master Architect Scott Sarver of Chicago-based smdp LLC, is currently underway, with the goal of creating a next-generation development that realizes the shared vision of SAGIA and the GBV team. When complete, it will create a live-work-play community that is both affordable to Saudi citizens and sustainable,” the US-based firm revealed.
Steve Lutes, MENA affairs vice president at the US Chamber of Commerce, commented that receiving the licence from Al-Omar was an important step forward for Global Business Ventures.
“One of SAGIA’s strategic goals is to act as an advocate for investors, enable them to invest, and establish their businesses in Saudi Arabia,” the SAGIA governor highlighted.
