Saudi Arabia gets fund for Jeddah Tower
The Jeddah Tower is set to surpass 1,000 metres in height.
Dubai: The Saudi Arabian fund responsible for what will become the world's tallest tower has been acquired in a $1.8 billion (Dh6.6 billion) transaction.
Kingdom Holding Company, Sumuo Holding Company, and Jeddah Economic Company (JEC) have finalised an agreement to acquire the real estate fund Al Inma Jeddah Economic Fund, currently owned by JEC.
Established in 2009, JEC is a collaboration among prominent real estate and development entities including Kingdom Holding Company, Abrar Holding Company, Qila’a Jeddah Company, and Saudi Binladin Group.
The centrepiece of this fund, the Jeddah Tower, is set to surpass 1,000 metres in height. Situated in the Obhur district of northern Jeddah, the development spans approximately 1.7 million square metres and will feature a Four Seasons Hotel, a shopping mall, commercial offices, and luxury residences.
As part of the fund, an adjacent site is earmarked for future development, including towers, residential and commercial complexes, shopping areas, entertainment venues, and international hotels.
Under the terms of the deal, Kingdom Holding Company will hold a 40 per cent stake in the new fund, as disclosed on the Tadawul exchange.
Construction on the tower commenced in 2013.