KARACHI: A Riyadh-based engineering and construction firm has signed an investment agreement in a $12 billion real estate project in the eastern city of Lahore with a Pakistani business consortium, officials said on Monday.
An MOU between Sarh Attqnia Company (SAC) and the Pakistani party, Javedan Corporation, was signed in Karachi on Sunday for the construction and development of the first phase of upcoming ‘Ravi City’ project to be built on 2,000 acres of land along the banks of the historic river Ravi.
The agreement comes hot on the heels of the recently held Riyadh investment conference during the three-day visit of Pakistani Prime Minister Imran Khan to Saudi Arabia last month.
“Investment conference was held in Riyadh where large Saudi companies participated... Fortunately, we got in touch with one of the big developers’ company- Sarh Attqnia- which was looking for some opportunities for development here (in Pakistan) as a partner,” Arif Habib, Chairman of Arif Habib Group of which the Javedan Corporation is a subsidiary, said at the signing ceremony of the agreement.
Habib said the Saudi company would contribute “financially and technically as well.”
Arif Habib, Chairman of Javedan Corporation and Khalid Abdulaziz AlMogbel, Chairman of Sarh Attqnia Company sign MOU in Karachi, Pakistan, on November 14, 2021. (AN Photo)
It is not yet clear what the investment contribution of SAC will be. The total project value, according to Ravi Urban Development Authority (RUDA), is approximately $12 billion.
The new project will be developed on both banks of the Ravi alongside a 46 km stretch contiguous to Lahore district’s northern and western boundaries through RUDA.
In May this year, RUDA had auctioned the first phase of the project, Sapphire Bay, to a consortium of 10 business partners consisting of large corporate groups of Pakistan.
Habib, whose group owns majority shares in the project, and is responsible for the land’s development and marketing, told Arab News that the final agreement would be signed in a matter of weeks.
“The definite agreement will be signed in two weeks’ time after completion of their (SAC’s) internal process,” Habib said.
Speaking at the signing event on Sunday, SAC chairman Khalid Abdulaziz AlMogbel expressed his confidence in Pakistan’s economy and vowed to invite other Saudi investors to Pakistan.
“We are really very confident about Pakistan’s economy and we would like to invite other Saudi investors to join us,” AlMogbel said and added: “Pakistan and Saudi Arabia are brothers, and we are working for long-term strategic cooperation for other projects.”
AlMogbel said his company was also looking for other investment opportunities in sectors including health care.
“We have other objectives in Pakistan to help in health care services sector,” he added.
The Saudi company is active in fields of infrastructure projects, building projects, manufacturing, and real estate development. The company has also commenced projects in the energy sector including oil services and gas projects both on and offshore.
