Saudi Focus

$720m loan to fund port expansion

October 2016

Saudi Arabia’s Emaar, the Economic City said that an affiliate had obtained a SR2.7 billion ($720 million) Islamic loan from banks to finance the second phase of building King Abdullah Port.

Ports Development Company secured a murabaha facility from Arab National Bank and Saudi British Bank with a tenor of 14 years, Emaar said. The loan is backed by collateral, including the port’s plot of land.

Emaar is developing King Abdullah Economic City (KAEC), a massive business zone on the Red Sea coast near Jeddah. The Public Investment Fund, Saudi Arabia’s top sovereign wealth fund, is reportedly negotiating to buy a stake in the project in order to accelerate its development. 

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