Red Sea Affordable Housing, a subsidiary of Red Sea Housing Services, has signed two agreements with Brasilia-based Direcional Engenharia S.A.

Under the technical services agreement (TSA), the Brazilian firm will share its experience and know-how with Red Sea Affordable Housing to execute and develop affordable housing projects in Saudi Arabia. The progress of the agreement shall be evaluated within two years from the signing date.

The second agreement is to incorporate a joint venture for the purpose of executing and developing affordable housing projects within the geographical scope that includes Africa, Middle East and Australasia. The conclusion of this agreement is subject to the consent of both parties to proceed with the incorporation of the joint venture, in light of the outcomes and results of the TSA mentioned herein.

The allocated share capital for joint venture is estimated to be worth SAR 20 million, in which the share pertaining to Red Sea Affordable Housing will be financed through inter-company borrowings from Red Sea Housing Services Co.

Red Sea Affordable Housing will own 50% of the share capital.