Saudi said to transfer Riyadh’s financial district to PIF

Saudi Arabia plans to transfer ownership of Riyadh’s King Abdullah Financial District (KAFD) to the Public Investment Fund (PIF) from the Public Pension Agency (PPA) in an effort to rescue the project, Reuters reported, citing people familiar with the matter.

The move is in line with the Vision 2030 package, which calls for the district to be transformed into “a special zone that has competitive regulations and procedures, with visa exemptions.”

JPMorgan is advising PIF on the transfer, the sources said, adding that a feasibility study to determine the value of the district, as well as how much the PPA will be paid is underway. The study will also consider how to manage KAFD’s proposed special visa status to allow Saudi nationals to enter the district for work.

KAFD, which reached a total investment of 31 billion by May 2014, has faced setbacks such as construction delays and a lack of tenants in the 1.6 million square meter area.

New revisions to the project call for a direct link to the international airport and an increase in the real estate and hospitality facilities in the district.