RED SEA HOUSING GETS ECA APPROVAL TO BUILD LABOR CAMP AT JAZAN CITY

Reference to the Companys previous announcement, dated 11/09/1433 corresponding to 30/07/2012, in regards to the adoption of the 2020 Growth Strategy, which includes the expansion in current business, RSH announces the receipt of the approval from ECA today 30/08/1434 corresponding to 09/07/2013 to construct an Industrial Labor Camp in Jazan Economic City (JEC), with an estimated cost of SAR 60 million. The labor camp, which will be built over an area of 189,000 sqm, will be constructed on different phases to serve the needs of companies operating within JEC, and is expected to have a maximum capacity of 10,000 residents. In addition to providing a variety of high quality housing units for Senior Staff, Junior Staff and Labors, the occupants will enjoy all complementing services such as continuous supply of electricity and fresh water, catering services, laundry services, entertainment facilities, swimming pools, play courts, and other recreation facilities. The first phase of the construction process of the Labor Camp is scheduled to start by the first quarter of 2014 and shall be operational by the second quarter of 2014. The project will be financed through Red Sea Housing internal Cash Flow, in addition to credit facility lines and banking loans that will be arranged locally. The financial impact of this project is expected by the first quarter of 2014. Shall there be any developments in regards to the construction of the labor camp in JEC, it will be disclosed in due course