Emaar Economic City, the master planner for King Abdullah Economic City, has signed a loan agreement worth $1.3bn (SAR 5bn) with the Saudi Ministry of Finance for the construction of the second phase of the 1,680-hectare mega-project.
The investment consortium’s commercial loan is for ten years with a three-year grace period before repayment, it said, in a statement to investors. The loan will be collateralized by a land area totaling 240-by-7.2 hectares on the project
The KAEC is a $13.33bn (SAR 50bn) development in Rabigh that will provide housing, business locations and industry. It will eventually include a sea port, an educational zone, a central business district with commercial space, retail outlets, resorts and a residential zone.
Construction began in 2006, and the phase one of construction was completed last year. Around 500,000 jobs have been estimated to be created in the construction, which has been scheduled for completion in 2020. The total project has a population target capacity of 2 million.Saudi Oger is among the contractors building the residential zone. It will build four towers that contain 500 apartments each.
The agreement was signed by Ibrahim Al-Asaf, minister of finance and Fahd Al-Rasheed, Emaar EC’s managing director.
Yesterday it was revealed that the investment consortium signed a 30-year lease agreement with Al Rajhi Company for Heavy Industries for the company to develop a steel manufacturing complex in the Industrial Valley area. The total lease space is 400 hectares.
Emaar Economic City shares closed down 1.33% to SAR 7.4 in Riyadh. (26th May 2011)
