Kingdom Holding, the company developing the world's tallest tower, Jeddah Tower, said its unit Jeddah Economic Company has raised SAR8.4bn ($2.23bn) from Saudi Arabia-based Alinma Investment for the project.
The money has been raised through a fund called Alinma Jeddah Economic City Fund, is aimed at the construction of the $1.2bn Jeddah Tower and the first phase development of the Jeddah Economic City project.
Expected to be completed in 2018, the Jeddah tower will comprise 252 floors, 26 of which have already been developed over an area of 85,000m².
Saudi Binladin Group (SBL) is the contractor for the skyscraper, which is expected to become the tallest in the world, surpassing the 828m tall Burj Khalifa in Dubai.
Alinma Bank will be the financer for the fund, which will be managed by Alinma Investment, with the projects to be developed by Jeddah Economic Company that will draw on the fund's credit lines.
In addition to these two projects, the Sharia-compliant fund will also cover other major real estate projects and operate under the Saudi Arabian Capital Market Authority (CMA) and current country laws.
Jeddah Economic Company is an affiliate under the Saudi development firm Kingdom Holding, which is chaired by Prince Al Waleed bin Talal.
Al Waleed bin Talal said: "This agreement with Alinma is part of Jeddah Economic Company's drive to diversify its sources of funding for Jeddah Tower and Jeddah Economic City.
"Our cooperation with the banking sector is a manifestation of just how strongly we believe in this ambitious project, which is set to become the pride and joy of every Saudi, especially those who reside in Jeddah, and will become an iconic urban centre that will take the city to the next level, both regionally and globally."
The Jeddah Economic City, on the other hand, has been planned as a modern development spread across 5.3km².
It has been 'designed to accommodate a comprehensive, multipurpose environment, replete with aspects of a modern lifestyle' and is expected to feature modern infrastructures.
Jeddah Economic Company chief executive officer Mounib Hammoud said: "The first phase, to be constructed over 1.5 square kilometres, will accommodate more than 3.3 million square metres of modern, multipurpose structures, which will form the nucleus of northern Jeddah's downtown, bolstering the city's standing in the world."
Image: Alinma Jeddah Economic City Fund will be managed by Alinma Investment. Photo: Copyright Kingdom Holdings Company.