Construction

Saudi developer secures $2.2bn funding to finish world’s tallest tower

By Ben Flanagan

Posted on November 30, 2015

Prince Alwaleed-backed Jeddah Economic Company in finance deal to complete 1km-tall tower in Jeddah

PHOTO: Prince Alwaleed Bin Talal (centre left) at the signing of the deal. Credit: Kingdom Holding

A Saudi Arabian developer backed by billionaire Prince Alwaleed Bin Talal has agreed a SAR 8.4 billion ($2.2bn) finance deal to finish work on what is set to be the world’s tallest building.

The Jeddah Economic Company and Alinma Investment, established by Alinma Bank, have signed a deal to initiate the fund, according to a statement issued by Kingdom Holding, an investment firm controlled by Alwaleed.

The deal will fund completion of the $1.2 billion Jeddah Tower, also known as the Kingdom Tower, which is set to rise 1km or higher, surpassing Dubai’s Burj Khalifa as the tallest tower. Construction work is already underway, with 26 floors having been completed.

The fund will also go towards developing the wider Jeddah Economic City development, according to the statement. The scheme is located in Obhur, just north of Jeddah on the Red Sea coast.

The fund, to be named the Alinma Jeddah Economic City Fund, will be Sharia-compliant and operate under the Saudi Arabian Capital Market Authority and current laws of the kingdom, the statement said. Alinma Bank will finance the fund, while Alwaleed will chair its board.

“This agreement with Alinma is part of Jeddah Economic Company’s drive to diversify its sources of funding for Jeddah Tower and Jeddah Economic City,” said Prince Alwaleed in a statement.

“Jeddah Economic City will be a must-go destination for those who visit Jeddah for business, trade, entertainment, culture, medical treatment and education, and will be a trendsetter in future real estate and urban development, all while securing the future of young Saudis with job opportunities and meeting the ever-growing demand for housing.”