Emaar the Economic City signs new funding deal

10 December 2014

New loan to be used to finance Saudi Arabia’s King Abdullah Economic City project

Emaar the Economic City, the master developer of King Abdullah Economic City (KAEC) has signed a SR1.3bn ($333m) murabaha loan agreement with the local Alinma Bank.

The eight-year sharia-compliant loan was signed on 9 December and will be used to finance the development of the Haramain district within KAEC.

The city will house up to 2 million people in 250,000 apartments and 25,000 villas, creating 1.3 million jobs. It will include a seaport; an industrial area; an educational zone; a central business district with commercial, mixed-use and retail outlets and a financial island; and resorts; as well as a residential area.

Operations at the seaport, King Abdullah Port, began at the start of the year.

The loan from Alinma Bank follows the signing of a SR2bn ($553m) Islamic loan from Sabb in September, which will also be used to build residential and infrastructure projects in the city.

According to a 2012 masterplan, SR125bn will have to be spent on infrastructure development in the new economic city in the coming years.

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