Reuters reports that Saudi Emaar will receive a SAR 5 billion loan (US$1.3 Billion) from the Saudi Ministry of Finance for its King Abdullah Economic City project. KAEC is a SR 100 billion (US$26.7 billion) mixed use city to be built north of Jeddah.
Emaar Economic City, listed on the Saudi Tadawal, (Symbol #4220) is the developer of the project. This entity reportedly will get the loan. As of its preliminary 31 December 2009 financials, EEC did not have any significant loans.
The loan is being described as designed to help speed up construction and delivery of the project. I'd guess with a project this size there are bound to be delays.
What isn't clear is if this loan is an indication of difficulty for the project in accessing finance (Dubai World fallout, general trends in the area)?
Or whether this loan had been planned from the start and is just being announced now?
Knowing the answers to these questions would be a highly useful insight. I am guessing it is the former.
Or whether this loan had been planned from the start and is just being announced now?
Knowing the answers to these questions would be a highly useful insight. I am guessing it is the former.
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