Saudi Arabia’s Emaar Economic City affiliate has received a $720m (SAR2.7bn) Islamic loan from banks in order to finance phase 2 of building King Abdullah Port, the company has announced.
Ports Development Co secured a murabaha facility from Arab National Bank and Saudi British Bank with a tenure of 14 years, Reuters reported.
The loan is backed by collateral, including the port’s plot of land.
Emaar is developing King Abdullah Economic City, a massive business zone on the Red Sea coast near Jeddah.
A source familiar with the matter told Reuters last week that the Public Investment Fund, Saudi Arabia’s top sovereign wealth fund, was negotiating to buy a stake in the project in order to accelerate its development.