BETHLEHEM, West Bank, (Reuters) – The Palestine Investment Fund and a Saudi-led group signed a $200 million deal on Wednesday to develop a Palestinian commercial real-estate project in the occupied West Bank.

The project, slated for launch this year, envisages a 50-dunam (12 acre) plot in the centre of the hub city of Ramallah with shopping, financial and leisure facilities.

The Land Holding Company, a subsidiary of Al-Rajhi group, and the PIF signed the deal in the West Bank city of Bethlehem during a conference aimed at encouraging foreign investment in the administration of Palestinian President Mahmoud Abbas.

The signatories said they would set up a dedicated company, Arduna, to expedite the project.

Established in 2003, the Land Holding Company is a leading real-estate company in the Middle East. It has been involved in projects in Saudi Arabia, Qatar, United Arab Emirates, Bahrain and Jordan.