A Saudi joint-stock company is established under this Law and the provisions of the Companies Law, named (Jeddah Development and Urban Development Company), hereinafter referred to as (the Company).

The company is established as a system and enjoys legal personality and independent financial liability, with full capacity to achieve its purposes, from the date of issuance of the royal decree authorizing its establishment. The company conducts its activities on commercial bases.

Preparation and implementation of urban development and improvement programs in the Qasr Khuzam area and any other area in Jeddah Governorate - in light of the procedural rules document accompanying this law - according to urban development priorities and in a manner that achieves the self-sustainability of development, improvement, and urban renewal projects, and carrying out all necessary actions to accomplish this purpose, including the following:

• 1- Identifying work areas that require development in Jeddah Governorate, including the area located between Bab Makkah and Qasr Khuzam, and the slum areas, after approval by the Minister of Municipal and Housing Affairs, preparing general plans for them, and implementing the necessary programs for their development and improvement.

• 2- Purchasing lands and real estate, leasing, investing, developing, organizing, operating the projects established thereon, maintaining them, and selling them after development.

• 3- Investing real estate, lands, and other assets owned by the company directly or indirectly, leasing and operating them, and providing opportunities for citizens to participate in these activities.

• 4- Developing mechanisms and means necessary to encourage the private sector to establish urban development and improvement projects in the areas owned by the company and other areas, implementing their urban, economic, educational, cultural, recreational, public transport projects, and all supporting services and their development.

• 5- Owning facilities or services or investing in facilities or other activities within the company's work areas, or leasing, managing, or operating them.

• 6- Issuing sukuk or bonds.

• 7- Importing equipment, devices, and all company needs.

The company is prohibited from purchasing lands solely for resale without developing them or constructing projects thereon.

The company may establish and own companies independently, and it may also have an interest (or participate in any manner) with entities or companies that conduct activities similar to its own or that may assist it in achieving its purpose. The company may own shares or interests in these companies or merge with them, be merged into them, or purchase them.

The company may also have an interest or participate in any manner with other companies, provided that it does not exceed twenty percent of its free reserves and does not exceed ten percent of the capital of the company in which it participates, provided that the total of these participations does not exceed the value of these reserves, with notification to the ordinary general assembly at its first meeting.

The company's main center is located in the city of Jeddah, and the Board of Directors may establish branches, offices, or agencies within the Kingdom if necessary.