SHUAA Capital Saudi Arabia announced on Monday the successful first closing of its “SHUAA Saudi Hospitality Fund I,” a Sharih-compliant closed-end fund which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms. As at Aug. 25, 2008, commitments from regional, institutional and individual investors totaled SR900 million ($240 million) for this initial closing and it is anticipated that a further SR1.1 billion ($293.3 million) will be fully subscribed by the second and final closing. Iyad Duwaji, chairman of SHUAA Partners, said: “The initial closing of the Saudi Hospitality Fund follows the earlier successful initial closing of the parent fund, the SHUAA Hospitality Fund I in July 2008 which raised another $200m. The final closing of the SHUAA Saudi Hospitality Fund will be held as soon as remaining commitments are finalized, after the summer holidays interruption.” SHUAA Saudi Hospitality Fund I is managed by SHUAA Capital Saudi Arabia. Its goal is to acquire or develop five stars and budget hotels in the Kingdom of Saudi Arabia. In addition, it will own 20 percent of a new hotel management company to be incorporated in the Kingdom by UAE-based Rotana Hotel Management Corporation LLC (Rotana). This new company will operate and manage the Fund's hotel properties on an exclusive basis. Omar Al-Jaroudi, chief executive officer of SHUAA Capital Saudi Arabia, said: ‘”We are proud to have launched the first private equity fund domiciled in the Kingdom SHUAA Capital Saudi Arabia. We have structured this unique Fund to allow the investors to benefit from the extraordinary growth potential of the hospitality sector, the real estate sector, and also from a 20 percent ownership in the Saudi Hotel Management Company.” He added: ‘”The Fund represents a unique and rare opportunity for Shariah-compliant high-net-worth and institutional investors to diversify their investment away from traditional sectors into hospitality and hotels.” __
