Global Investment House has launched Mushaa Real Estate Company with a capital of $112 million. Global said Mushaa will “present a series of distinctive real estates in the GCC markets” utilising the concept of Hisas Al-Mushaa. This will be followed by Mushaa’s expansion and entry into other markets. Mushaa’s operations and activities will be Shari’ah compliant.
Omar El-Quqa, executive vice president at Global claimed the real estate sector was growing at an unprecedented level in the region.
“The real estate sector is also the fastest growing in comparison to other sectors, especially the hospitality segment which is strongly correlated to GDP,” El-Quqa said, adding that the opportunity was still there for a considerable demand for Islamic timeshare, a sector which he believed was under-represented.
El-Quqa said that Mushaa will launch its real estate using the ‘Hisas Al-Mushaa system’, which is a Shari’ah compliant time share system, allowing the partial ownership of a real estate property for 20 to 50 years. When compared to other types of residency such as hotels, Hisas Al-Mushaa have an array of features. These features include affordability, as well as the ease to change or swap shares.
Baz Real Estate Modern Systems Company, which has developed the Hisas Al-Mushaa concept, will assist Mushaa in acquisitions as well as selling Hisas Al-Mushaa through Baz’s network in the GCC and the region.
Mushaa’s strategic plan for the first five years apparently targets the ownership and development of five to seven five star equivalent real estate properties in the GCC. These properties will be promoted using the Hisas Al-Mushaa system, according to Global. El-Quqa said that the company aims to increase its paid up capital to $112 million by issuing 290 million shares at a nominal value of $3.76 per share.
Mushaa Real Estate Company, which was established in July 2006, intends to list on the Kuwait Stock Exchange (KSE) after fulfilling the KSE’s listing requirements.
Osama Sabbah, executive vice president at Baz said that studies show that the Middle East can support up to $540 million as an average annual revenue from Hisas Al-Mushaa, especially in booming tourist destinations such as Dubai, Sharm El Shiekh, and Bahrain, as well as religious sites such as Mecca and Medina.