The Saudi Development Fund (SDF) and the Arabian Gulf University (AGU) have signed a major agreement on financing the construction of the BD100-million ($264 million) King Abdulla Medical City in Bahrain, said a report.

The construction contract for the project had earlier been awarded to Al Fouzan Construction Company, reported Bahrain News Agency.

With the signing of the deal, construction work is set to begin soon on the state-of-the-art King Abdulla Medical City Hospital which is expected to be operational by the beginning of 2022.

The medical city will be a multiple-phased mixed-use development comprising new academic and medical facilities, research centre on-site accommodation to create a self-sustained campus.

In Phase One, the project will see the development of a 264-bed hospital supported by on-site staff housing in addition to 15 operating rooms and quality support medical services such as advanced laboratories and a pharmacy.

Phase Two includes a medical school, research centres, physiotherapy centre, mosque, conference centre and a shopping centre.

SDF vice chairman and managing director Dr Khalid Bin Sulaiman Al Khudairi signed the deal with AGU president Dr Khalid bin Abdulrahman Al Ohali in the presence of Saudi ambassador to Bahrain Prince Sultan bin Ahmed bin Abdulaziz Al Saud, Supreme Council for Health (SCH) president Lieutenant General Dr Shaikh Mohammed bin Abdulla Al Khalifa, Education Minister Dr Majid bin Ali Al Nuaimi and Health Minister Faeqa bint Said Al Saleh, it added.