Skip to content Skip to Search
Skip navigation

Three Saudi companies acquire fund behind world’s tallest tower

By Gavin Gibbon
Work began on Jeddah Tower in 2013 but the project has met many obstacles Creative Commons/Flickr/Adrian Smith + Gordon Gill Architecture
Work began on Jeddah Tower in 2013 but the project has met many obstacles
  • Fund owns Jeddah Tower
  • Building will rise to 1,000m
  • Construction mired in controversy

The Saudi Arabian fund behind what will be the tallest tower in the world has been acquired in a $1.8 billion (SAR6.8 billion) deal.

Kingdom Holding Company, Sumuo Holding Company and Jeddah Economic Company (JEC) have signed an agreement to take ownership of the Al Inma Jeddah Economic Fund, which is currently wholly owned by JEC.

The fund’s Jeddah Tower will be more than 1,000m high. The surrounding development, located in the Obhur district in the north of the city, will measure an estimated 1.7 million square metres.

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

It will include a Four Seasons Hotel, a shopping mall, commercial offices and luxury residential units. 

A site nearby, which is part of the acquisition agreement, is being lined up for development later. The proposal includes towers, residential and commercial complexes, shopping, entertainment and tourism areas, as well as international hotels.

Kingdom Holding Company, led by chairman Prince Alwaleed bin Talal, will own 40 percent of the new fund, according to a note on the Tadawul exchange.

Construction of the tower began in 2013, but has been stop-start because of controversy over the contractors.

Work was paused in 2017, after only a few dozen floors had been built, when Prince Alwaleed and his chosen contractor, Saudi Binladin Group, fell out of favour during an anti-corruption campaign. Prince Alwaleed has always maintained he was innocent of any wrongdoing.

JEC was formed in 2009 as a joint venture among real estate and development companies. It is composed of Kingdom Holding Company, Abrar Holding Company, Qila’a Jeddah Company and Saudi Binladin Group.

Last September it was reported that building work on the tower had restarted, although confusion remained over the timeline for completion.

“It will happen but I’m not going to say it’s 100 percent,” an investment ministry official said in October. 

Latest articles

Saudi date drink cola Milaf

‘World first’ date soft drink launched by PIF subsidiary

A soft drink made from dates has been launched by Al Madinah Heritage Company, a subsidiary of Saudi Arabia’s Public Investment Fund. Milaf Cola, which is claimed to be the world’s first commercial soft drink made from dates, uses only premium fruit and contains no added sugar.  Dates have historically been used in Middle Eastern beverages […]

Uber and WeRide launch autonomous mobility service in Abu Dhabi

Uber launches driverless operations in Abu Dhabi

Ride-hailing giant Uber Technologies and Chinese autonomous vehicle tech company WeRide have launched a commercial driverless taxi service in Abu Dhabi. The service, available on the Uber platform, will be available for trips on Saadiyat Island, Yas Island and routes to and from Zayed International Airport, with plans to expand the operating territory in the […]

The five-year pact between PIF and Bpifrance Assurance Export will focus on projects supporting Vision 2030

PIF secures $10bn from French export credit agency

Saudi Arabia’s Public Investment Fund has signed an agreement with Bpifrance Assurance Export, a French export credit agency, to seek funding for up to $10 billion. The five-year pact will focus on projects supporting Vision 2030 and is aligned with the fund’s strategy to grow build long-term global partnerships. The agreement will unlock new opportunities for French […]

Saudi Arabia's deposit renewal with the State Bank of Pakistan will boost Pakistan’s foreign exchange reserves and strengthen its economy

Saudi Arabia extends $3bn loan to Pakistan

Saudi Arabia has renewed its $3 billion deposit with Pakistan’s central bank for another year.   The deposit renewal with the State Bank of Pakistan will boost Pakistan’s foreign exchange reserves and strengthen its economy, the Saudi Fund for Development (SFD) said. The initial agreement was signed in 2021 and rolled over in 2022 and […]