MAKKAH: Jabal Omar Company (JOC) will soon receive SR1.5 billion in loans from four banks in order to speed up construction of the massive residential project near the Grand Mosque in Makkah. The Makkah Construction Company (MCC) will provide bank guarantees to get the loans.
Abdul Rahman Faqeeh, chairman of MCC and JOC, said the loan would enable JOC to complete the project as quickly as possible.
He indicated that JOC would issue sukuks for SR3 billion to mobilize more funds required for completing the huge project.
"We have already completed two residential towers under the Jabal Omar project. We have invited tenders from specialized companies to manage and operate the towers. We'll announce the winner at the end of this month," the chairman told the MCC shareholders assembly meeting on Monday.
The general assembly approved the company's long-term strategic investment in Jabal Omar. The company currently owns 11 percent of JOC's shares. The present market value of these shares is estimated at SR1.4 billion. MCC will receive commission from JOC for providing bank guarantee.
Faqeeh highlighted the strategic relationship between MCC and JOC. "We deal with the two companies equally in order to protect rights of shareholders."
By GALAL FAKKAR
© Arab News 2010
