Thursday, May 26, 2011
Gulf News
Dubai: The Saudi Arabian Ministry of Finance has signed a loan agreement with Emaar, The Economic City (Emaar.E.C), a Tadawul-listed company, for 5 billion Saudi riyals (Dh4.89 billion) to accelerate the development of the second phase of King Abdullah Economic City (KAEC), the largest of its kind private sector development in the region.
The agreement was signed by Dr Ebrahim Al Asaf, Saudi Arabian Minister of Finance, and Fahd Al Rashid, Managing Director and CEO of Emaar.E.C.
Under the agreement, the commercial loan is for a tenor of ten years with repayment commencing after three years. Emaar.E.C has provided guarantees to the loan by making 24.7 million square metres of land collateral. Repayments are to be made through returns from the project.
The first phase of KAEC has already been completed with residents and businesses moving in. The project is connected with Saudi Arabias initiative to expand the domestic economy, said Mohammad Al Abbar, Chairman of Emaar Properties. KAEC is a perfect complement to the Saudi Vision 2020, led by the pillars of economic diversification.
Staff Report
Gulf News 2011. All rights reserved.
