Firm to develop 17 facilities in Saudi Arabia

Dubai: Shuaa Capital Saudi Arabia (SCSA) on Sunday said it has signed a master agreement with Rotana Hotel Management Corporation, a leading Pan-Arab hotel management company, to develop and manage 17 hotels and serviced apartments.

"SCSA recently launched a two billion Saudi riyal ($533 million) Sharia compliant closed-end fund under the name Shuaa Saudi Hospitality Fund I, which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms," Shuaa said in an e-mailed statement.

Shuaa Saudi Hospitality Fund I is managed by SCSA and will also own 20 per cent of the new company that will manage and operate the properties on an exclusive basis. This new company will be managed by Rotana.

Earlier this year, both Shuaa Capital, UAE, and Rotana have committed to invest in the Shuaa Saudi Hospitality Fund I through a parent regional hospitality fund, the $200 million Shuaa Hospitality Fund I that was established by Shuaa Capital.

Omar Al Jaroudi, chief executive of SCSA and Selim Al Zyr, president and chief executive of Rotana, signed the agreement in Riyadh.

The signing ceremony was attended by Majid Saif Al Ghurair, chairman of Shuaa Capital; Tariq Al Mutlaq, chairman of SCSA; Nasser Al Nowais, chairman of Rotana; Eyad Duwaji, chief executive of Shuaa Capital, and other senior officers from Shuaa and Rotana.