Saudi Arabia plans $2.2bn fund for Kingdom Tower
Alinma Bank will finance the new fund, which is to be managed by Alinma Investment, Kingdom added without elaborating on how the money would be raised
Saudi Arabia’s Kingdom Holding , the investment firm of billionaire Prince Alwaleed bin Talal, said its affiliate Jeddah Economic Company (JEC) has arranged financing to complete construction of the world’s tallest building, The Kingdom Tower.
JEC agreed with Alinma Bank to establish a $2.2bn (SAR8.4bn) real estate development fund, part of which will finish work on the Kingdom Tower in Jeddah, Kingdom Holding said in a statement, 26 floors of which have been built so far.
The Islamic fund will also develop the 1.5 sqkm (0.6 sq miles) first phase of the Jeddah Economic City project, an urban development scheme sprawling over 5.3 sqkm.
In addition to Kingdom Tower, the scheme is to include Saudi Arabia’s largest shopping mall, Reuters reported.
Kingdom Holding owns about a third of JEC, while Jeddah-based Abrar Holding owns a similar stake.
The main contractor for the tower, Saudi Binladin Group, and Kilaa Jeddah Co each own about 16.6%.
Alinma Bank will finance the new fund, which is to be managed by Alinma Investment, Kingdom added without elaborating on how the money would be raised.