MEEF - Middle East Engineering Projects News & Releases
The announcement was made at Ewaan's first founders'
meeting, where the firm's strategic shareholders were also
revealed following the strong oversubscription of the
5 July 2006
MANAMA — The
Bahrain-based International Investment Bank (IIB) and its
co-investors announced yesterday the formation of a $100
million Shariah-complaint real estate development company,
Ewaan, which will initially focus on benefiting from the
vast opportunities Saudi Arabia offers, before exploring
Established by IIB in conjunction with its partners the
Islamic Corporation for Development of the Private Sector (ICD),
a multilateral investment affiliate of the Islamic
Development Bank, and the Saudi Economic and Development
Company (SEDCO), a Saudi-based investment group, Ewaan will
focus on investment in the Saudi Arabian real estate market.
Based in Saudi Arabia, the new firm will seek to invest some
SR2 billion ($533 million) in the fast-developing Saudi
property sector over the next three years.
With the conclusion of the meeting, Ewaan will now move to
acquire the requisite licences from the relevant authorities
in Saudi Arabia to begin its investment activities.
According to recent projections, it is expected that over
the next ten years, the gap between housing supply and
demand in Saudi Arabia will reach some 1 million units, "and
Ewaan believes that the mid-market segment represents a
large proportion of this requirement," underlined the IIB's
chief executive officer, Aabed Al Zeera.
Further commenting on the establishment of Ewaan, IIB's
chief operating officer, Salah Nooruddin, said: "These
trends create strong opportunities for companies such as
Ewaan, which have the technical and market expertise as well
as the financial strength to enter the Saudi market and
effectively identify those segments and projects that can
deliver superior returns. Over the next three years, the
company intends to put strong inflows of investment towards
the development of affordable housing projects in addition
to other areas that can provide strong results for Ewaan and
The Internal Rate of Return (IRR) for investment in the
company is expected to be in excess of 22 per cent per annum
over a three to five-year period. Further, there is scope
for significantly enhanced returns through capital
appreciation at exit should the company be floated through
an Initial Public Offering (IPO), it was highlighted.