Saudi based Hadi Hamad Al-Hammam Group has signed an agreement with the Board of Investment (BOI) of Sri Lanka to establish a yacht, boat and pleasure craft repair facility in the Galle Harbor.

The company has agreed to invest US$ 44 million in the project.

BOI Chief M.M.C Ferdinando and Hadi Hamad Al-Hammam, President of the Hadi Hamad Al-Hammam Group have inked the agreement for the two parties.

Seagulf Shipyard (pvt) Limited, a new company formed under the Saudi Arabian firm will lead the project that is expected to generate 1,500 jobs.

"One possibility is for the Galle facility to service Maldivian vessels, which currently sail as far as Indonesia and Thailand for their maintenance," a BOI statement said.