Jeddah Economic Company, an affiliate of Prince Alwaleed’s Kingdom Holdings, has announced that it signed a deal with Saudi-based Alinma Investments to form a $2.2bn fund to finance ongoing work at one of its major projects. The fund, to be named the Alinma Jeddah Economic City Fund, is a Sharia-compliant fund that will operate under the Saudi Arabia’s Capital Market Authority. Alinma Bank will finance the fund while Jeddah Economic Company will be the master developer of projects that will draw on the fund's credit lines.
The Alinma Jeddah Economic City Fund will help finance the work of the first phase of Jeddah Economic City project and the Kingdom Tower, which is slated to be world’s tallest tower upon completion – the company said. Built across a site of 85,000 square metres, building work on the tower has already reached the 26th floor.
Following the deal, officials said that the Kingdom Tower was on track to be completed by 2018 as required funds have been secured. Jeddah Economic City is a mixed used development stretching over 5.3 square kilometres and is located north of Jeddah. The first phase, spanning 1.5 square kilometres, will include a number of residential and commercial complexes. In addition to the Kingdom Tower, the development will also boast Saudi Arabia’s largest shopping mall.
Jeddah Economic Company is 16 per cent owned by the Saudi Bin Laden Group, while Kingdom Holding and Abrar International Holding Co each hold a 33 per cent stake in the venture.
By Mary Sophia
