Urbas shares jump 21% after announcing an alliance with construction company Arkal in Saudi Arabia
Urbas shares closed Monday's session up more than 21% to 0.015 euros per share, after announcing a strategic agreement with local construction company Arkal to enter Saudi Arabia.
Arkal is owned by Prince Sultan bin Abdullah bin Abdulaziz Al Saud, one of the youngest sons of former King Abdullah and nephew of the current King.
Urbas has created a joint venture with this construction company, 80% owned by the Spanish company, to develop large infrastructure projects in Saudi Arabia and accelerate its expansion and development process in this country.
This joint venture will also allow the Spanish company to participate in many of the large infrastructure projects of the 'Vision 2030' programme, with which Saudi Arabia wants to boost its economy and attract around 400,000 million euros in investment.
Through this programme, the aim is to develop 40,000 homes in the country by 2025 in order to achieve the goal of 70% home ownership by 2030.
Urbas explained to the Spanish National Securities Market Commission (CNMV) that, within the framework of this alliance with Arkal, it is already working to participate in the project to build between 1,000 and 1,500 homes in one of the developments near Riyadh.
Urbas has also announced that it is "in advanced talks" to build a mixed-use real estate complex in Riyadh with housing, a hotel, offices and commercial facilities, the construction of which would also be undertaken by this new joint venture.
The first meetings and conversations have also taken place to participate in some of the "most emblematic" projects of the 2030 Agenda, such as the tourism developments Qiddiya Entertainment City, NEOM, Red Sea Project and Amaala Resort, Urbas added.
At the same time, the company has reported that it is in talks to develop real estate developments on land owned by Arkal.
"In the new cycle of expansion and internationalisation in which the Urbas Group is immersed, it is expanding its projection in the Middle East and intensifying its competitiveness on an international scale, obtaining important business expectations in other countries of the Persian Gulf and in other activities of the company with great projection and growth such as water, gas and renewable energies", Urbas pointed out.
