Sanaa to start work on up to $2.3bn of real estate projects

08 December 2009

State-backed investment authority plans huge tranche of property schemes

Yemen’s state-owned real estate investment authority plans to start work on between $1.7bn and $2.3bn of projects in 2010 and 2011, the company’s chief executive officer (CEO) tells MEED.

Construction work on four schemes is scheduled to start between the first quarter of 2010 and the same period of 2011.

Saad Sabrah, chairman and CEO of The General Holding Corporation for Property Development & Investment (Shibam), says values for the projects have not been finalised, but international investors have already agreed to back the schemes. He declined to name the investors.

Each development will be largely financed by off-plan property sales, with Shibam and its partners developing the supporting infrastructure.

The first scheme to be built will be the Sunrise Towers residential scheme in the Thahr Himyar district of Sanaa, which will cover 54,000 square metres. In the second and third quarters of the year work will start on the Sanaa Terraces and Sanaa East schemes, two residential projects covering 143,000 sq m and 85,000 sq m respectively.

Shibam also intends to start work on the first phase of a new tourist city, Jenan Aden, near the southern port of Aden by the first quarter of 2011.

Sabrah says Shibam plans to develop in total $15bn of real estate projects by 2030 in an attempt to boost tourism and create a new market for luxury housing in the country.

In November, work started on the first phase of the $600m Al-Rayan Hills development in Sanaa, which is being developed jointly by Shibam and Qatari real estate firm Qatari Diar.

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