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Saudi Arabian real estate firm Jabal Omar Development Company has secured a 2 billion riyal ($533 million) Murabaha deal with Al Rajhi Bank.
The deal will help refinance existing facilities, enhance the company’s cash flow and improve the mortgage structure against loans.
The five-year facility can also be extended for three more years.
As a guarantee, the developer has mortgaged two of its assets in the Jabal Omar project, which comprises a mixed-use development that includes residential apartments, hotels and commercial spaces in Makkah.
Earlier this month, the company reported Q2 net losses worth SAR 42.06 million, against net profits of SAR 33.30 million in Q2-24. Jabal Omar said the decrease was mainly attributable to a decline in gross profit due to lower hotel revenues, in addition to the recognition of a property impairment amounting to SAR 106 million.
(Writing by Bindu Rai, editing by Seban Scaria)
