(MENAFN- The Peninsula) Saudi Arabia's Binladin Group, a construction conglomerate famous all over the region, has made a foray into the Qatar market with a bang.
It has joined hands with an equally celebrated state-backed Qatari Diar to launch a joint venture holding company with 50:50 stakes.
One of the most welcome developments of the deal is that Qatar would eventually boast a mega building materials manufacturing unit — something it so far lacks.
The offshoot holding company, expected to have a massive capital base, will have under its umbrella two firms, one of which will carry out mega contracting and construction works in Qatar and the rest of the world.
Qatari Diar officials hinted most of the major infrastructure development works, including the construction aspects of the ambitious multi-billion dollar rail venture, in Qatar could be handled by this joint venture entity.
While the other subsidiary will focus on manufacturing building materials on mass commercial scale to be marketed locally as well as overseas, giving Qatar an edge in the field.
Top officials from the two sides inked the path-breaking deal yesterday and told reporters before the signing ceremony at the Ritz-Carlton that the move had the blessings of the leaderships of the two countries, Qatar and Saudi Arabia.
The joint venture will be known as 'QD SBG Group' — the abbreviation standing for Qatari Diar (QD) Saudi Binladin Group Company Limited (SBG).
The joint venture agreement was signed by Ghanim bin Saad Al Saad, Qatari Diar's CEO, and Sheikh Mohamed Mohamed Binladin. "We are honoured to be partnering with the Saudi Binladin Group, the globally-renowned construction conglomerate, here in Qatar," said Al Saad in a statement released at a news conference that coincided with the signing ceremony.
Binladin said on the occasion: "We are very excited to have the opportunity to work in Qatar with Qatari Diar."
On behalf of the newly-setup joint venture (QD SBG), Qatari Diar and SBG later signed two additional agreements to launch the two above-said subsidiaries—one with Barwa Real Estate Company, the other with First Investor Company.
Barwa is partly owned by Qatari Diar, whereas First Investor Company, known in brief as TFI, is a wholly-owned Islamic investment banking arm of Barwa Bank.
Barwa Real Estate Company's Group CEO, Yousif Rashid Al Khater, and TFI's board member and Barwa' Deputy CEO, Abdul Aziz Al Saad, were present at the signing ceremony.
Launched in 2005, Qatari Diar is wholly-owned by the Qatar Investment Authority (QIA), the country's sovereign wealth fund. It has more than 35 real estate development projects in over 20 countries around the world.
Al Saad said told reporters before the signing ceremony: "We need good partners to carry out the mega infrastructure development projects in the country. None of the projects would be delayed because of the global recession."
He described the joint venture deal as strategic and a 'giant leap' for national (local) companies.
Later, replying to questions, Sheikh Mohamed Binladin said there were no political obstacles to enter the Qatari market.
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