Saudi Binladin Group will sign a $200 million Islamic project finance deal with three banks before the end of October to fund the construction of the Hajj Terminal at King Abdulaziz Airport in Jeddah.

The deal marks the first time that the Saudi government has not funded an airport construction project from its own resources.

The tenor of the debt is 12 years and 9 months, with Bank al-Jazira, Credit Suisse and the Islamic Development Bank taking part in the deal. Gulf One Bank advised on the deal.

Binladin was awarded the build-operate-transfer contract for the project, which in total will cost in excess of $300 million, in December 2006. The terminal will cover 500,000 square meters and involve the construction of a permanent building.