Kuwait-based Gulf Investment Corporation will start building its Sulb steel project in Bahrain by the end of 2009, according to bankers financing the project.

Bankers close to the deal say the project is on track for the $750m debt financing to be in place by November. The award of a construction contract will be made at about the same time, says a source involved in the project’s development.

“Things have been moving slowly on the Sulb project over Ramadan, but now we plan to have the financing in place so that construction can begin before the end of the year,” says a banker funding the deal.

The deal is being financed by Jordan’s Arab Bank, France’s Societe Generale, Saudi Arabia’s Banque Saudi Fransi, Mizuho and Sumitomo Mitsui Banking Corporation, both Japanese.

The Sulb project is sponsored by Gulf United Steel Company (Foulath), a steel industry investment company set up by Gulf Investment Coporation, and Japanese steel company Yamato Kogyo.