US$28.5 million company launched to meet fast growing housing demand in Saudi Arabia
In line with the region’s rapid growth in construction, a new US$28.5 million Closed Joint-Stock construction company has been launched in Jeddah on Monday, January 22.
Construction Products Holding Company (CPC), currently under formation, is jointly owned by Bin Laden Group (49%) and a group of Saudi businessmen (51%). The total paid-up capital is divided into 10,700,000 shares, at the value of US$2.67 per share.
Dr. Faysal Alaquil, Director of Business Development, CPC, said, "The establishment of CPC came as a reaction to the unprecedented growth seen in the construction industry in the Kingdom of Saudi Arabia in particular and the Gulf region in general. CPC aims to serve as a one-stop-shop for investment in construction material and other supporting industries."
Saudi Arabia remains the core market for CPC, the company has embarked on an aggressive expansion plans to expand its geographical presence and accommodate new markets like Syria, UAE and Kuwait. The plan will start with the construction of four production sites in Abu Dhabi.
CPC has purchased a 265,000 square meter of property in Syria’s Adra zone for an industrial development. Construction Products Holding Company owns 65 percent of CPC Syria, which has been set up as a Limited Joint-Stock Company, with a registered capital of US$170. In addition, the company acquired 840,000 square meters of property in Bahra, located between Jeddah and Makkah. Bahra Company for Construction Steel was established on an area of 40,000 square meters and the remaining 8,000,000 square meter of land will be developed exclusively for factories.
Commenting on the expansion plans Dr. Alaquil said: “While the Kingdom of Saudi Arabia remains the largest market for the company, CPC indents to expand its geographical presence through a strategic development plan accommodating new markets such as Syria, the United Arab Emirates and Kuwait,” and disclosed, “The company will soon be establishing a 280,000 square meter industrial zone in Riyadh to cater to the country’s property market. In the UAE, four production sites will be developed in Abu Dhabi to meet the construction market demand for the Gulf countries.”
The Kingdom of Saudi Arabia real estate statistics indicate that the number of housing units will reach 9 million units within the next 20 years. The government and the private sectors plan to meet this growing housing demand.