Saudi developer Jeddah Economic Company, an affiliate of Kingdom Holding Company, has secured financing to complete the construction of what is slated to become the world’s tallest building: the 1 kilometer (3,280 ft) Jeddah Tower.
Alimna Bank has agreed to provide an 8.4 billion Saudi Arabian riyal ($2.23 billion, €2.11 billion) fund to finance the tower, formerly known as Kingdom Tower.
The Sharia-compliant fund, operating under the Saudi Arabian Capital Market Authority, is to be named the Alinma Jeddah Economic City Fund.
“Alinma Bank will finance the fund, to be managed by Alinma Investment, while Jeddah Economic Company will be the master developer of projects that will draw on the fund’s credit lines,” according to Jeddah, the owner and developer of the broader Jeddah Economic City project, located in Obhur, just north of Jeddah on the Red Sea coast.
“Initially, its purpose will be to develop the first phase of the Jeddah Economic City project and finish construction work on Jeddah Tower, currently at its 26th floor, as well as a number of major real estate projects within the project,”
If all goes as planned, the tower would overtake the 828-metre Burj Khalifa in Dubai as the world’s tallest building when completed in 2018.
“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, head of Kingdom Holding Company. “Our cooperation with the banking sector is a manifestation of just how strongly we believe in this ambitious project.”
Talal Al Maiman, executive director of Kingdom Holding Company, said that financial planning for the project took over two years.
The first phase of the Jeddah Economic City will be constructed over 1.5 square kilometers and will accommodate more than 3.3 million sq meters of “modern, multipurpose structures, which will form the nucleus of northern Jeddah’s downtown.”