LONDON - Riyadh’s $10 billion business hub, which has been under construction since 2006, will be given a fresh lease of life under the management of the Kingdom’s sovereign wealth fund, according to reports.
The Public Investment Fund (PIF) has finalized a deal to take over the management of the King Abdullah Financial District from the Public Pension Agency, Bloomberg reported, citing unnamed sources.
While details of the deal have yet to emerge, Hilmi Ghosheh, who acts as an adviser for PIF’s real estate projects, is reportedly set to manage the completion of the development.
The Saudi Vision 2030 economic reform plan outlines details for the rehabilitation of the capital’s financial district, which is to be an economic free zone with visa exemptions and a direct connection to the airport.
The first phase of the project is due to launch next year with plans to host the G-20 meeting there in 2020.
The government is now exploring new incentive options to attract financial institutions to occupy space in the district, Bloomberg reported. Decade-long tax breaks for banks are among the ideas circulating to help populate the 73-building development, which has been restructured to reduce office space and increase the number of residential units.
PwC and local regulator Capital Market Authority are among the companies due to take space in the area.