The companies will focus on real estate development, property finance and hotel management.

The real estate company will have a value of SR500m and will be based in Jeddah. It will focus on engineering and design for residential and commercial projects in the kingdom.

Jiwar Real Estate Finance will also be headquartered in Jeddah. It will have a value of SR2bn and is being set up to capitalise on the kingdom’s proposed mortgage law, which is expected to be approved in the coming months and stimulate real estate developments.

Jiwar Hotel Management is being set up to meet growing demand in the kingdom, especially for religious tourism.

Jiwar, a subsidiary of the Saudi Binladin Group, is developing the $5.8bn 21-tower Rawabi Abraj al-Bait development in Mecca.