Saudi developer Al Akaria last week announced plans to set up a new contracting and construction firm, according to a bourse statement.

The move has already gained approval from the Ministry of Commerce and Investment. The new company, dubbed Saudi Real Estate Construction Company, will commence with operations on a capital of SR 100 mn.

While 60% of the new Riyadh-based firm were subscribed for by Al Akaria itself, Kaya Homes is targeting the remaining 40% with Kaya being chosen due to its vast experience in the relevant fields for the new company’s operations such as construction and maintenance.