Banks in Saudi Arabia are beginning to line up to provide contractor financing for SR20bn ($5.48bn) of contracts for security compounds being tendered by the Interior Ministry.

Bids from interested contractors are due in mid-July and banks say they are beginning to position themselves to provide financing to a winning contractor.

The project involves the development of security compounds at more than 50 locations throughout Saudi Arabia.

“There is a big opportunity for contractor financing to be put in place on this and a lot of banks have already been having conversations with bidders to ensure they are in place once a contract is awarded,” says one banker in Saudi Arabia.