(Alex Finkelstein is co-editor of Debt and Equity Journal.)

JEDDAH-In one of the most ambitious mixed-use ventures in recent years here, Cayan Investment and Development Co. and Arbah plan to invest more than one billion Saudi riyals (about US $375 million) in a landmark development. The project would cover 32,000 square meters (about 288,000 sf) of prime real estate along Jeddah's northern coastal road overlooking the Red Sea.

The project would comprise high-end apartments, class A office space, a commercial and retail center, fine dining, entertainment, leisure facilities and one of the tallest skyscrapers in Saudi Arabia. A ground-breaking date hasn't been set. The deal was signed by Cayan chairman Ahmad AlHatti and Arbah chairman Bader Al Zahrani at Riyadh's leading real estate exhibition.

"The signing represents a ground-breaking development for both Cayan and Arbah and will set new benchmarks for property development in the Kingdom," AlHatti says in a prepared statement. "The Kingdom of Saudi Arabia represents an important market for Cayan." He adds, "We are committed to developing world-class properties and delivering innovative real estate to the growing Saudi property market. Above all, we are thankful for the unlimited support received from the leadership of the Kingdom which has enabled us to develop such an innovative project."