July 2009 JEDDAH - Saudi property firm Dar Al-Arkan Dar Al-Arkan will raise around SR6.16 billion ($1.64 billion) through issuing bonus shares to help fund expansion to take advantage of a growing population and housing shortage. The largest real estate developer in the region by market capitalization will raise its capital by 50 percent to SR10.8 billion through issuing 360 million bonus shares to existing shareholders, it said in a statement on the bourse website. "They ( Dar Al-Arkan Dar Al-Arkan ) are essentially doing it to fund expansion in Saudi Arabia. Saudi Arabia is probably the best market in the GCC," said Bobby Sarkar, analyst at Al Mal Capital in Dubai, referring to the six-member Gulf Cooperation Council. "The government is spending a lot of money on infrastructure and we have seen several UAE contractors looking at Saudi Arabia." At a share price of SR17.05, an issuance of 360 million bonus shares would equate to a capital hike of SR6.14 billion. The capital hike, which will be funded from reserves and retained profit, will help "ongoing and future expansion in the company's projects", the company said in May. Dar Al-Arkan Dar Al-Arkan was not immediately available for . The shortage of real estate in Saudi Arabia is providing opportunities for construction firms in Dubai, who are looking at Saudi Arabia to drive their business as work dries up at home. Dubai's Arabtec Holding said last month it had won a $533.3 million contract to build towers in Jeddah, its latest contract in the Kingdom. Saudi Arabia needs 1 million new houses by 2014 to meet the needs of its growing population, HSBC said in a report last month.

© The Saudi Gazette 2009 omar 1.1:zy