Saudi Arabia’s Jeddah Economic Co said on Monday it was in talks with local Saudi banks to raise funds for the SAR14bn ($3.73bn) first phase of its Kingdom City project.
If completed, the project’s over one kilometre tall Kingdom Tower will replace Dubai’s Burj Khalifa, 828 metres tall, as the highest in the world.
Kingdom City in Jeddah will also include mixed-use residential and commercial developments, the chief executive of the Jeddah Economic Co said at a construction conference in Dubai.
“The financial requirement is for SAR14bn to complete phase one by 2020,” Mounib Hammoud, said at the side lines of the conference.
“Our owners have already invested about SAR8.7bn into this project, which is a huge investment. The remaining will be financed and we are closing a financing deal with banks which will be announced soon.”
He added that the funding would be through local Saudi banks but did not reveal how much will be raised.
Hammoud said some funds for the project would also come from sale of land plots to other investors.
The first phase of the project is over an area of 1.4 million square metres, centered around the Kingdom Tower. The tower is expected to be completed by 2018 and will cost the company SAR6bn, Hammoud said. Dubai’s Burj Khalifa was built by Emaar Properties for a total cost of $1.5bn.
“We will hand over the tower with 251 floors completed by 2018.”