International Investment Bank (IIB), a globally focused investment bank based in Bahrain, today announced the creation of a new real estate development company for investment in the Saudi Arabian real estate market. To be based in Saudi Arabia, and with an authorized capital of SR400million (more than US$100 million), the planned entity will seek to invest some SR2 billion (US$533 million) in the fast-developing Saudi Arabian property sector over the next three years.

In launching the venture, IIB has partnered with 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. Together, IIB and its two partners will work to identify and invite subscription from additional strategic investors and partners that can add value and further financial and operating strength to the company.

Commenting on the announcement, IIB’s Chief Executive Officer, Aabed Al Zeera, said, “We are pleased to launch this new venture in conjunction with ICD and SEDCO, with whom we continue to partner in the creation of compelling and well diversified investment opportunities across multiple industry sectors, asset classes and geographic locations.

“Our ongoing relationships with these firms and our work together on a number of recent transactions reflects IIB’s belief that success is best achieved through long-lasting partnerships. We are confident that in joining yet again with ICD and SEDCO, we have created another exciting new opportunity that will yield positive results. The Saudi Arabian real estate market offers strong potential for growth and superior returns and we are confident that in working with the right partners, we are well positioned to benefit from current positive trends. These include the further opening of the market to private and foreign investment as well as the adoption of regulations that are creating a more transparent investment climate.