Abu Dhabi, Kuwait firms float real estate joint venture

Abu Dhabi, Sep 29 (IANS) A new real estate company has been launched through a joint venture between the United Arab Emirates (UAE)-based Al Benaa Real Estate and Kuwait Commercial Markets Complex Co (KCMCC).

The new company, to be called Al Shoula Properties, will be based in Abu Dhabi and will initially target the UAE's property sector and related markets, the official Emirates News Agency (WAM) reported.

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The company's plans for the medium-term include expansion, where opportunities arise, into global markets.

'When you look at what is happening here in Abu Dhabi today, there are so many business areas of opportunity,' Noura Jasim Al Nowais, chief executive of Al Benaa, said following the launch of the joint venture.

'Forming Al Shoula Properties is a natural progression for us, and fits our strategy; we are an investor and a vehicle for other investors,' he added.

According to Al Nowais, while Al Benaa was already providing real estate solutions to meet Plan Abu Dhabi 2030 requirements, the new Al Shoula Properties will help in offering a broader service portfolio, targeting growth areas.

'In addition,' he said, 'we feel it will be exciting to work with a company of KCMCC's experience and strength.'

Many observers see Abu Dhabi as a favoured investment destination already, while others believe that its best years are yet to come.

Plan Abu Dhabi 2030 is a comprehensive plan launched by the emirate of Abu Dhabi for the development of Abu Dhabi city through the next quarter of a century.

Through 10 individual policy statements, the plan specifies land uses, building heights and transportation plans for the entire metropolitan area of Abu Dhabi.

Under the plan, the city's population is projected to grow to over three million by 2030.

According to the WAM report, Al Shoula Properties will be a diversified real estate investment, development and management company.

Its interests will range from managing duty free stores, exhibition centres and commercial and industrial properties, to running real estate exhibitions.

Other activities will include organising exhibitions for real estate projects undertaken by the company.

The company will initially cover the UAE and Gulf markets and then look at expanding globally.

'This business cannot simply be about making money or building houses and tower blocks for a few people,' KCMCC deputy manager Ali El Daoud said.

'It is communities that support real estate, and if we ignore communities and our role in building communities, we risk losing in the long term,' he said, adding that neither Al Benaa nor KCMCC was about short-term profitability.