01 April 2016

Saudi-based Jeddah Economic Company (JEC) has secured Shari’a-compliant financing of up to SR3.6 billion ($959.4 million) from Alinma Bank for Phase One of its ambitious Jeddah Economic City, which includes the kilometre-high Jeddah Tower.

Located in Obhur, north of Jeddah, the mixed-used project will accommodate a range of facilities supporting a modern lifestyle over its 5.3-sq-km development.

The first phase, to be constructed over 1.5 sq km, will accommodate more than 3.3 million sq m of multipurpose structures, which will form the nucleus of northern Jeddah’s downtown, said JEC, in which Kingdom Holding holds a one-third share.

Construction of the Jeddah Tower has now reached its 37th floor and it will be the world’s tallest tower on completion, soaring more than 1 km high.

The finances have been provided by Saudi-based Alinma Bank into a fund which is 100 per cent owned by JEC.

The Alinma Jeddah Economic City Fund is a closed-end private, Capital Market Authority (CMA) approved, Shari’a-compliant real-estate investment fund, established by the fund manager – Alinma Investment Company – with a value of SR8.4 billion ($2.23 billion).

The objective is to raise funds for the completion of Jeddah Tower  – previously known as Kingdom Tower – as well as a number of major real estate projects within the development owned by JEC, it added.

Prince Alwaleed bin Talal bin Abdulaziz Alsaud, the chairman of JEC and chairman of Alinma Jeddah Economic City Fund Board, said: “Securing the financing for the project from Alinma Bank is an important step forward for the project that guarantees its progress as per the company’s plan.”

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