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Jeddah economic city developer secures $270m loan from PIF

REUTERS/Stephen Kalin
Train stops at the new station of the Haramain speed train at King Abdullah Economic City, near Jeddah, on September 18, 2018

Saudi-listed Emaar The Economic City has signed a term loan agreement of up to SAR1 billion ($270 million) with the Public Investment Fund, the kingdom’s sovereign wealth fund.

The financing period for the loan is 18 months from the date of the agreement, the company said in a statement to The Saudi Exchange (Tadawul). 

The loan will be repaid through a single bullet payment upon maturity and is guaranteed by real estate assets within King Abdullah Economic City (KAEC), north of Jeddah, which has a market value of no less than SAR1.5 billion. 

The funds will be used to enhance strategic plans and projects in KAEC, which aims to become a leading industrial, commercial and tourism hub for the Western Coast of the kingdom, the statement noted.  

In November 2022, The Economic City sold an industrial plot to Ceer National Automotive Co. to build a specialised factory for electric vehicles.

The deal was valued at SAR359.04 million, which Ceer will pay the developer in installments over 15 years.