JEC, Alinma Investment ink deal on SAR 8.4 bln real estate fund

Alinma Investment and Jeddah Economic Co., an affiliate of Kingdom Holding, have signed an agreement to establish a SAR 8.4 billion Sharia-compliant real estate fund to develop Jeddah Economic City and finish construction work on Jeddah Tower, formerly known as Kingdom Tower.

The Alinma Jeddah Economic City Fund will initially facilitate the first phase of a multipurpose luxury development in Jeddah Economic City that will include hotels, condominiums and offices, Kingdom Holding said in a statement on Sunday.

The fund would later focus on other projects which would be financed by the investment arm of Alinma Bank.  It will be chaired by Kingdom Holding’s chairman Prince Alwaleed bin Talal.

“This agreement with Alinma is part of Jeddah Economic Company’s drive to diversify its sources of funding for Jeddah Tower and Jeddah Economic City,” said Prince Alwaleed.

Kingdom Holding holds a 33.35 percent stake in JEC while Saudi Binladin Group owns 16.63 percent.

Abrar International Holding Co. and businessman Abdulrahman Sharbatly own 33.35 percent and 16.67 percent of the project, respectively.