Jabal Omar Development Co., one of Saudi Arabia's largest-listed property developers, has signed a Murabaha facility agreement worth 1.9 billion riyal ($506.7 million) with Al Rajhi Bank.

The financing will be over two years, the developer said in a filing on the Saudi stock exchange on Thursday.

The facility will be utilised for completing the construction of its various assets and repaying of financial obligations.

As guarantee, the company has offered the following: security over certain real estate assets within the Jabal Omar Project; a Ministry of Finance guarantee by agreeing on a number of representations and warranties to MOF; mortgaging lands in favour of the MOF.

Jabal Omar is the company behind the Jabal Omar complex of commercial, residential and hotel properties near the Grand Mosque in Makkah.

Earlier this week, the developer was issued a license to operate the second tower of Jabal Omar Jumeirah Hotel in Makkah.

The Jabal Omar master plan consists of several phases, with a land area of over 235,000 square metres (sqm) and a built-up area of over 2.5 million sqm with a total of 46 towers which include hospitality, commercial and residential developments.

(Writing by Brinda Darasha; editing by Bindu Rai)