SHUAA Capital Saudi Arabia, cjsc (SCSA) announced Sunday that it has signed a master agreement with Rotana Hotel Management Corporation LLC (Rotana), a leading Pan-Arab hotel management company that operates various 5-star, 4-star, 3-star hospitality properties, furnished apartments, and resorts throughout the Middle East and North Africa. SCSA recently launched a SR2 billion ($533 million) Shariah compliant closed-end fund under the name “SHUAA Saudi Hospitality Fund I”, which aims to develop and own seventeen hotel properties, furnished apartments, and resorts across the Kingdom of Saudi Arabia comprising 5,000 rooms. SHUAA Saudi Hospitality Fund I is managed by SCSA and will also own 20 percent of a new company in the Kingdom that will manage and operate the properties on an exclusive basis. This new company will be managed by Rotana. Earlier this year, both SHUAA Capital psc, UAE, and Rotana have committed to invest in the SHUAA Saudi Hospitality Fund I through a parent regional hospitality fund, the $200 million SHUAA Hospitality Fund I that was established by SHUAA Capital psc. Omar Al-Jaroudi, chief executive officer of SCSA and Selim El-Zyr, president and chief executive officer of Rotana signed the agreement in Riyadh. The signing ceremony was attended by Majid Saif Al-Ghurair, chairman of SHUAA Capital, Tariq Al-Mutlaq, chairman of SCSA, Nasser Al-Nowais, chairman of Rotana, Iyad Duwaji, chief executive officer of SHUAA Capital, and other senior officers from both SHUAA and Rotana. Omar Al-Jaroudi said: “We expect the Saudi Arabian economy to continue to grow at recent rates, and with further liberalization, we believe that demand for modern hotel facilities by both business travelers and visitors will continue to increase. This joint venture with Rotana confirms our commitment to the Saudi market, and represents a unique opportunity for investors to access the hospitality sector which otherwise is seldom part of their portfolio.” He noted: “We are delighted to be associated with Rotana, a leading hotel chain that has gained regional and international recognition during the past few years. __
