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Logo of Knowledge Economic City
Knowledge Economic City (KEC) signed, on April 22, 2021, an agreement with Saudi Tourism Development Fund and Riyad Bank to provide SAR 782 million financing for the development of the Knowledge City Hub project, the company said in a bourse filing.
The facility will be used for developing the first phase of the project, which includes a mall, hotel, and boulevard.
The financing will cover 79% of the project development cost (excluding land value). The related financing procedures will be finalized in a six-month period.
Moreover, the loan will be repaid in a 13-year plan, and the company will provide collateral in the form of land plots from its portfolio, as there are no related parties to the deal, KEC explained.
The facility comes in line with the fund’s objectives to support investment in tourism industry and the related services, and encourage the private sector investors by supporting various tourism projects across the Kingdom.
This will help attract more visitors to the Kingdom and provide more job opportunities for Saudi youth, in line with Vision 2030 that targets 30 million pilgrims and visitors annually, the statement added.
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