Arab investors headed by Saudis signed an agreement with the Palestinian Authority to construct a real estate project in the West Bank with $200 million worth of investments, in a step that is the first of its kind since the recent initiative of the peace process.

The construction work will begin in early 2008, as part of billions of dollars worth of projects, that the Saudi company is mulling to implement in the Palestinian territories, the president of al-Riadh-based Saudi Land Holding Company (LHC) said.

The Palestinian Investment Fund together with LHC own a 50% stake in a real estate company with a capital of $50 million. The company was established to construct a residential and commercial project planned near the city of Ramallah in the West Bank.

Okaz, Saudi Arabia, December 17, 2007; al-Rai, Jordan, Monday, December 17, 2007