ALINMA Jeddah Economic City Fund has secured Shariah-compliant financing of up to SR3.6 billion from Alinma Bank on Dec. 10 2015. Formulating the financial model of the project with Alinma Bank was finalized based on a financing strategy that fulfills the project's needs in accordance with the first business plan covering the first phase of the project which is expected to take five years. The objective of the financing is to provide funding to build and develop the infrastructure for phase one of Jeddah Economic City project and to continue the construction of Jeddah Tower which has now reached its thirty seventh floor, in addition to developing a number of primary real estate projects within the general Master Plan. Jeddah Economic Company – the owner and developer of the Jeddah Economic City Project and Jeddah Tower in Obhur, North Jeddah, is the 100% owner of the Alinma Jeddah Economic City Fund's units, which is a closed-end private, Capital Market Authority (CMA) approved, Shariah-compliant real-estate investment fund, established by the fund manager – Alinma Investment Company – with a value of SR8.4 billion. Prince Alwaleed Bin Talal, Chairman of Jeddah Economic Company and Chairman of Alinma Jeddah Economic City Fund Board, said: "Securing the financing for this project from Alinma Bank is considered an important step forward for the project that guarantees its progress as per Jeddah Economic Company's plan. Additionally, it expresses the financial sector's trust in the real-estate market in Saudi Arabia in general as well as in the Jeddah Economic City Project and its development plans. The Jeddah Economic City Project represents a new era in private sector real-estate development in Saudi Arabia and will contribute to the growth of the economic movement in Jeddah and to the Kingdom's economy in general." Abdul-Mohsen Al-Faris, CEO of Alinma Bank, said: "We have formulated a financial model based on a financing strategy that fulfills the projects needs in accordance with its business plan. "Alinma Bank is keen to finance and support exceptional national projects in all business sectors in Saudi Arabia. Jeddah Economic City Project and Jeddah Tower for what this enormous project offers from financial incentives and investment products that are structured, modern, and shari'a compliant." Saleh Abdullah Alhenaki, CEO of Alinma Investment, attended the signing ceremony. Eng. Talal Al-Maiman, Board member of Jeddah Economic Company, Chairman/CEO of Kingdom Real Estate Development Company, said "although the complete financial planning for the project has taken almost two years, it has paid off to reach an advanced financial model that is shari'a compliant and it takes into account the complexity of such project. The first phase is to build a modern, integrated city and the highest skyscraper in the world on our homeland, which will set an example to follow in upcoming real estate projects." Mounib Hammoud, CEO of Jeddah Economic Company, added: "With financing in place, we are now on our way to achieve our set goals and to complete building Jeddah Tower and the infrastructure of Jeddah Economic City as per the five year plan developed by Jeddah Economic Company, especially since this advanced and highly complex investment deal is underway, and its results are evidence of the professionalism and cooperation of all involved parties in formulating the financing, most of all of Alinma Bank team." The company's slogan, "It's Happening...", has become a reality now in regards to the financing, building of the tower, and finalizing the procedures and legal approvals required to reach new horizons in real estate development and to establish an urban center by global standards and a unique modern lifestyle providing the city of Jeddah with a new integrated center for services that offers multiple uses and is attractive to all strata of society."
