Urbas has signed a strategic agreement with the Saudi construction company Arkal. The JV aims to develop large infrastructure projects.
Urbas has signed a strategic agreement with the Saudi construction company Arkal, owned by Prince Sultan bin Abdullah bin Abdulaziz Al Saud, one of the youngest sons of the previous King Abdullah and nephew of the current King.
The agreement is based on creating a 'joint venture' and developing large infrastructure projects in Saudi Arabia, as reported by the Spanish company, which has stressed that this alliance will allow it to accelerate its expansion and development process in this country.
This 'joint venture', 80% owned by Urbas, will also allow the Spanish company to participate in many of the large infrastructure projects of the 'Vision 2030' Program with which Saudi Arabia wants to boost its economy and attract around 400,000 million euros in investments.
This program intends to develop 40,000 homes in the country by 2025 to reach the goal of 70% of homes being owned by 2030.
Urbas has explained to the National Securities Market Commission (CNMV) that, within the framework of this alliance with Arkal, work is already underway to participate in the construction project of between 1,000 and 1,500 homes in one of the developments near Riyadh.
Likewise, Urbas has announced that it is "in advanced talks" to build a mixed-use real estate complex in Riyadh with homes, a hotel, offices, and commercial facilities, the construction of which would also be carried out by this new 'joint venture'.
The first meetings and conversations have also taken place to participate in some of the "most emblematic" projects of the 2030 Agenda, such as the tourist developments Qiddiya Entertainment City, NEOM, Red Sea Project, and Amaala Resort added Urbas. At the same time, the company has reported that it is in talks to carry out real estate developments on land owned by Arkal.
"In the new cycle of expansion and internationalization in which the Urbas group is immersed, its projection in the Middle East is expanding and its competitiveness on an international scale is intensifying, obtaining important business expectations in other countries of the Persian Gulf and other activities of the company with great prospects and growth such as water, gas and renewable energies", highlighted Urbas.
Urbas shares have closed the session with a rise of more than 21%, to 0.015 euros per share, after announcing the strategic agreement to land in Saudi Arabia.