Uyoun Al-Raed Commercial Company secures SAR1.97 billion (US$525.22 million) real estate Murabahah financing

19 days to go Wednesday 27th August 2014 Uyoun Al-Raed Commercial Company secures SAR1.97 billion (US$525.22 million) real estate Murabahah financing Daily Cover SAUDI ARABIA: Uyoun Al-Raed Commercial Company, a member of Saudi Arabia’s retail and real estate business developer Fawaz Al Hokair Group, has successfully procured a SAR1.97 billion (US$525.22 million) Murabahah financing package. Proceeds from the financing scheme will be channelled to the construction of the Mall of Arabia, purported to be the largest mall in Riyadh. The Law Office of Salman M Al-Sudairi in association with Latham & Watkins was Uyoun Al-Raed’s advisor for the deal. According to Salman Al-Sudairi, who led the Latham & Watkins team, the transaction represented a milestone in the real estate financing sector. “This is a very significant financing in the real estate sector in the Kingdom of Saudi Arabia, and a testament to the continuing growth and sophistication of real estate sector in the region. This is a standout deal for the complexity of the financing structure and its scale, and will pave the way for continued innovation in this area,” explained Salman. Sharing the same sentiments, Muhanad Awad, CEO of FAS Capital, the financial and investment arm of Fawaz Al Hokair Group, said: “This financing allows us to construct another landmark mall in the Kingdom of Saudi Arabia and further demonstrates our pioneering role in this area.” The Saudi Arabian real estate sector has shown tremendous progress since the introduction of its real estate laws last year. According to data released by the Saudi Arabian Monetary Agency, the volume of real estate loans provided by Saudi banks to corporates and individuals grew to SAR123.4 billion (US$32.89 billion) in the first quarter of 2014. Islamic investors are seen to be showing interest in residential opportunities in the kingdom. Real estate financings to individuals grew by 33% to SAR76.8 billion (US$20.47 billion) compared to SAR57.9 billion (US$15.43 billion) in the same period in 2013. The volume of real estate financing is expected to register its highest volume within the next five years as demand for property in the country increases. Today’s IFN Alerts TURKEY: Ziraat Bank to launch own participation banking unit by October, according to sources KUWAIT: Zain Group to meet on the 10th September to discuss Sukuk issuance PAKISTAN: Pakistan Economic Co-ordination Committee meets to approve government guarantee for Pakistan International Airlines' Shariah compliant funding UAE: Former advisor to Dubai ruler urges companies in Abu Dhabi and Dubai to consider merging for the benefit of the UAE economy GLOBAL: Alkhabeer Capital acquires US office portfolio in association with investment partner USAA Real Estate Company GLOBAL: Investcorp to sell stake in US-based packaging firm for US$1.43 billion UAE: Financing costs could fall further in the UAE as it becomes a borrower's market, according to industry head GLOBAL: IDB approves US$987 million in funding for development projects around the world BANGLADESH: Court sentences ICB Islamic Bank officials to jail for embezzlement US: Kuwait Finance House affiliates call for liquidation of US-based HDG Mansur GLOBAL: Meezan Bank to provide data for INCEIF Shariah audit research project OMAN: Sohar Islamic commits to providing children of Omani Bahjah Orphan Society with a monthly allowance for a period of one year as part of CSR SRI LANKA: Amana Takaful relocates Matara branch SAUDI ARABIA: Shariyah Review Bureau confirms Shariah compliance of Saudi Indian Company for Cooperative Insurance for 2013 GLOBAL: UAE's National Takaful Co to sell 60.53% of its shares to MB UAE Investments and Oman's Al Madina Takaful SAUDI ARABIA: Al Ahlia Insurance Company reduces negative earnings to under 50% of its capital, accumulated losses flag removed from Saudi Stock Exchange website BAHRAIN: Gulf Finance House receives rating upgrade based on successful refinancing and improved liquidity position MALAYSIA: RAM lifts ratings on Bank Islam, Affin Bank and HwangDBS based on reassessment of shareholder support MALAYSIA: MARC withdraws 'AA-ID/Stable' rating on Serissa Sinar's Islamic facility following final redemption KUWAIT: Kuwaiti cabinet appoints former finance minister as chairman of Capital Market Authority Latest Roundtables June 2014 May 2014 Dubai Islamic Economic Roundtable Series 2014-2 Dubai Islamic Economic Roundtable Series 2014-1 Events IFN Global Forum 2014 15th - 16th September 2014 by REDmoney events IFN Kuwait Forum 2014 29th September 2014 by REDmoney events IFN Sri Lanka Forum 2014 21st October 2014 by REDmoney events IFN Turkey Forum 2014 6th November 2014 by REDmoney events IFN Saudi Arabia Forum 2014 17th November 2014 by REDmoney events IFN Africa & Egypt Forum 2014 8th December 2014 by REDmoney events Training Structuring Islamic Trade Finance Solutions 8th - 10th September 2014 (Dubai) by Islamic Finance training Audit & Internal Control for Islamic Banking 22nd - 24th September 2014 (Kuala Lumpur) by Islamic Finance training Islamic Treasury & Risk Management Products 22nd - 24th September 2014 (Kuala Lumpur) by Islamic Finance training Understanding Shariah Parameters on Murabahah 24th September 2014 (Kuala Lumpur) by Islamic Finance training Islamic Fund & Asset Management 25th - 26th September 2014 (Kuala Lumpur) by Islamic Finance training Basel III for Financial Institutions 13th - 15th October 2014 (Kuala Lumpur) by REDmoney training Shariah Audit for Islamic Business Banking 13th - 15th October 2014 (Kuala Lumpur) by Islamic Finance training Structuring Islamic Legal Documentation 14th - 15th October 2014 (Kuala Lumpur) by Islamic Finance training Shariah Governance, Corporate Governance and IFSA 2013 15th - 16th October 2014 (Kuala Lumpur) by Islamic Finance training Funds Transfer Pricing 19th - 21st October 2014 (Manama) by REDmoney training Asset and Liability Management 28th - 30th October 2014 (Jakarta) by REDmoney training © Copyright policy: No part of IslamicFinancenews.com may be reproduced in any form by any means, electronic or mechanical (including photocopying, recording or information storage and retrieval) without permission in writing from the publisher. Contact Us : Call: +603 2162 7800  | Email: subs@islamicfinancenews.com  | Website: www.islamicfinancenews.com | Malaysia Office: Suite 22-06, 22nd Floor, Menara Tan & Tan, 207, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia | Dubai Office: 3rd Floor, X2 Tower, Jumeirah Lake Towers (JLT), Jumeirah Bay, PO Box 126732, UAE