RIYADH, 4 July 2006 — A group of Saudi investors has set up a limited liability company with a paid-up capital of SR420 million to construct a chain of Islamically oriented serviced apartments in Riyadh, Jeddah, Makkah and Madinah as well as in Egypt.

These serviced apartments, an upgraded version of furnished apartments, will cater to the needs of upscale pilgrims and business executives, and would be up and running by mid-2007. A salient aspect of these serviced apartments is that they would be branded after the internationally renowned Ascott chain of Singapore that has carved out a niche in the international market through its presence of more than 16,000 units in 17 countries and 43 cities around the world.

Further, they will be financed in accordance to Islamic banking and offer the same level of facilities as in five-star hotels but without nightclubs, bars and alcoholic beverages that go with such hotels. The tariff structure of these serviced apartments is also highly competitive compared to five-star properties.

Mohammed Al-Nashwan, executive president of Riyadh-based HARTT Hotel Consulting, told Arab News that HARTT and Addax Investment Bank of Bahrain have floated 40 million shares for subscription in MENA Serviced Apartment Company. “HARTT has acquired 40 percent of MENA Serviced Apartments in exchange for having the exclusive rights to develop Ascott’s three brands: The Ascott, Somerset and Citadines in Saudi Arabia and Egypt,” he added.

Referring to the launch of the Saudi limited liability company, he said it would be known locally as Uscot Al-Arabia whose shareholders include prominent investors from the tourism, hotel and real estate sectors led by the Al-Tayyar Group for Travel and Tourism.

In this context, Nasser Al-Tayyar, vice chairman and chief executive officer of Al-Tayyar Group for Travel and a key investor in Uscot Al-Arabia, said there is a growing need for professionally managed serviced apartments in these two markets in the absence of specialized operators, while demand is far more than supply. “At Al-Tayyar Group, we regularly book our clients at Ascott properties throughout their wide range of brands such as The Ascott, Somerset & Citadines and we certainly appreciate the fine level of service at Ascott and see value in introducing this operator to Saudi Arabia and Egypt,” he said.