King Abdullah Economic City receives loan to drive its second phase
The Saudi Arabian Ministry of Finance has signed a loan agreement with Emaar, The Economic City (E.C), for US$ 1.33 billion to accelerate the development of the second phase of King Abdullah Economic City (KAEC) in Saudi Arabia.
The project under a Tadawul-listed company is the largest of its kind in the region’s private sector developments and is billed to usher in a new era of socio-economic prosperity to the Kingdom.
Mr Mohamed Alabbar, Chairman, Emaar E.C and Emaar Properties PJSC, thanked King Abdullah Bin Abdul Aziz Al Saud for his support with the work.
“KAEC is a perfect complement to the Saudi Vision 2020, led by the pillars of economic diversification focused on manufacturing and exports, and creation of new jobs for Saudi nationals through the active involvement of the private sector,” Alabbar said.
“A full-fledged development featuring a sea port, homes, offices, hotels, industrial facilities and leisure destinations, KAEC will serve as a catalyst to attract foreign investment, global trade, commerce and industry to Saudi Arabia,” he added.
The agreement signed by His Excellency Dr Ibrahim Al-Asaf, Saudi Arabian minister of finance, and Mr Fahd Al Rasheed, managing director and CEO of Emaar. E.C. is a commercial loan for a tenor of ten years with repayment to be through returns from the project and commencing after three years.
Emaar E.C which is a majority shareholder has provided guarantees to the loan by collateralising 24.7 million sq metres of land.
The first phase of KAEC has already been completed with residents and businesses moving in to the development.