In an important step, the Public Investment Fund has acquired 75% of governmental companies affiliated with the secretariats in the regions and cities of the Kingdom, where the fixed assets of land and property of these companies are currently being evaluated, and there are a number of concerned companies that are now operating such as Al Balad Al Amin Company (Holy Capital Municipality), Jeddah Development and Urban Development Company (Jeddah Municipality), and Al Maqar Real Estate Development Company (Medina Municipality).
Strategies for developing the lands of the secretariats in the regions and cities of the Kingdom.
Strategies for the development of secretariat lands Secretariat companies, which were established after Cabinet approval in recent years, aim to adopt clearly defined strategies to develop secretariat lands and informal neighborhoods and achieve urban balance, while involving the private sector in this, through the implementation of flexible strategic plans that respond to the current and future needs of different cities and regions. Secretariat companies aim to adopt clearly defined strategies to develop secretariat lands and informal neighborhoods and achieve urban balance.
The work of these companies is limited to projects related to the development of informal areas and affordable and alternative housing projects, and these companies are financed by transferring some real estate assets from the secretariats to the companies, under which these companies can enter them as in-kind shares in the establishment of joint companies with the private sector. These companies are limited to projects related to the development of informal areas and affordable and alternative housing projects.
The Public Investment Fund's acquisition of 75 percent of the companies affiliated with the secretariats comes within the framework of the Fund's strategy, which is a key pole in the largest economic transformation plan in the Kingdom, with the aim of preparing the Saudi economy to face the post-oil era, as the Saudi government seeks to make the Fund the largest sovereign wealth fund in the world with assets of up to one trillion dollars, including owning the state-owned oil company Aramco. The acquisition of 75 percent of the secretariats" companies comes as part of the Fund's strategy.
Balad Al-Amin Company in Makkah For his part, the Secretary of the Holy Capital and Chairman of the Board of Directors of Al-Balad Al-Amin Company confirmed that the Public Investment Fund is currently making final arrangements to own 75% of the shares of secretariat companies, noting that Al-Balad Al-Amin Company was established in 2009 in accordance with the Companies Law in force in the Ministry of Commerce and Investment.
The company aims to develop infrastructure and urban development and implement development projects in the scope of Makkah and its suburbs, through multiple partnerships with the private sector, and the company adopts several activities, including the development of slums in the city of Makkah, the construction of infrastructure for the city, suburban development, affordable housing and other activities, and established under the umbrella of the company several companies, indicating that the company's capital is 1.2 billion riyals is the value of land owned by the company in Makkah. The capital of the company is 1.2 billion riyals, which is the value of the lands owned by the company in Makkah.
Jeddah Development and Urban Development Company As for Jeddah Development and Urban Development Company, CEO Ibrahim Kotbakhana explained that the company's capital is about SAR 2.6 billion, which is variable according to the lands that are transferred to the company, adding, "We are currently working on governance procedures to coincide with the "new vision", so that the Public Investment Fund becomes the main owner of the company." Jeddah Development and Urban Development Company.
The company's strategic objectives are to provide distinctive and sustainable urban development projects, address slums, support the social and economic development of Jeddah, achieve continuous growth in returns and profitability of the company's activities, increase added value to Jeddah's economy, and reduce informal areas in Jeddah. Kotbakhana explained that the company's strategic objectives are to provide distinctive and sustainable urban development projects, address slums and support the social and economic development of the city of Jeddah.
In addition to developing and implementing practical solutions for housing, identifying, registering and managing land belonging to the Municipality, identifying and implementing projects in partnership with different sectors and forming specialized companies, and adopting an effective and efficient mechanism for project implementation and operations management.
HQDC In Medina, Al-Maqr Company for Development and Development was established to adopt clearly defined strategies to develop the lands of the secretariats and informal neighborhoods and achieve urban balance, in partnership with the private sector by implementing flexible strategic plans that respond to the current and future needs of different cities and regions and financing them by transferring some real estate assets from the secretariats to its subsidiaries so that these companies can enter them as in-kind shares in the establishment of joint companies with the private sector. Maqr Company for Development and Development was established in Medina.
The capital of Al-Maqr Company for Development and Development is one billion nine hundred and eighty million riyals, divided into 198 million shares with a par value of ten riyals each, all in-kind shares owned by the state represented by the Municipality of Medina. The capital of Al-Maqr Company for Development and Development is one billion nine hundred and eighty million riyals.
