Saudi Arabia’s Jabal Omar Development Company is planning a $450m rights issue to help finance a real estate project in Mecca.

The proceeds of the rights issue will finance about 15 per cent of the $3bn project.

Jabal Omar has appointed the local Al-Rajhi as adviser on the fundraising for the Mecca development near the Grand Mosque. Al-Rajhi is working on proposals to fund part of the development through the issue of sukuk.

It had previously appointed another local adviser, Jadwa Investments, to arrange financing, but Jadwa was dropped in April after it failed to meet deadlines for putting financing in place (MEED 25:05:09).

Construction work, which involves the development of 15 towers over a 60 acre area, began in September 2008 (MEED 10:9:08).