Akaria Hanmi, a joint venture between South Korean construction management company HanmiGlobal and Saudi Arabian property developer Al Akaria, will continue to solidify its position as a leading construction management company in the Saudi Arabian market, the head of the joint venture said last week.

In an interview with a group of reporters, Khalid Al Arfaj, chairperson of Akaria Hanmi’s board of directors, said the company will expand its business, with the target of achieving 30 billion won ($26 million) in sales and operating profit of 3.5 billion won next year. 

Currently, Al Akaria owns a 60 percent stake in the firm, while the remaining stake and right of business operation is held by HanmiGlobal. 

Al Arfaj said based on Al Akaria’s competitiveness in the Saudi Arabian market and HanmiGlobal’s expertise in construction and project management, the company will advance into Gulf Cooperation Council regions and North African countries that will be invested in by the Saudi Arabian government in the future. 

Al Arfaj, who also serves as deputy CEO of a subsidiary of Al Akaria, real estate company SRECO, visited Seoul last week for a board meeting that commemorated the first anniversary of the establishment of Akaria Hanmi. 

According to the firm, Akaria Hanmi reported operating profit of 1.5 billion won as of November this year. 

Earlier this year, the company clinched a 17 trillion-won project to manage an urban development project in Al Wedyan, some 20 kilometers north of Riyadh. 

The company said the Al Wedyan project will build a multipurpose complex that includes residential and commercial facilities on 6,988 square meters of land, more than double the size of Yeouido in Seoul. 

Under the deal, Akaria Hanmi will receive up to 100 billion won in service fees for designing the development blueprint, a fund-raising scheme and cost management. This seven-year development project will break ground in 2019. 

“In the future, we will expand its business by acquiring the Saudi Arabian government’s state-run projects such as for building the National Travel Center, Data Center and Administrator Building,” said Al Arfaj, adding that he would continue to seek sustainable growth plans for cooperation of Al Akaria Group and HanmiGlobal. 

As part of the plan, the company will hire 150 more employees next year, not just from South Korea and Saudi Arabia but also from India and Jordan. 

HanmiGlobal, which has a presence in 58 countries, entered the Saudi Arabian market in 2008 with the establishment of an overseas office there. 

By Kim Da-sol (ddd@heraldcorp.com)