In a strategic move to bolster its real estate ventures, Jabal Omar Development Company has successfully arranged a financing agreement with Al Rajhi Bank, valued at SAR 1.90 billion. This significant financial deal was formalized on January 25, showcasing a robust partnership between the two entities.
This substantial loan will be backed by collateral involving specific real estate assets from the expansive Jabal Omar project, with the Ministry of Finance serving as the beneficiary of this security arrangement.
In addition to the collateral, Jabal Omar Development Company is set to provide a series of representations and warranties to the Ministry, further solidifying the deal’s framework.
The influx of capital through this loan, which spans a two-year period, is aimed at expediting the completion of ongoing construction phases within the project. Additionally, the funds will be utilized to address the company’s existing financial commitments.
The financial injection comes at a time when Jabal Omar has experienced a turn in fortune, reporting a profit of SAR 237.55 million in the first nine months of 2023. This marks a significant recovery from a net loss of SAR 157.98 million reported in the same period of the previous year.
On the other hand, Al Rajhi Bank experienced a slight dip in its net profits, with a 2.31% year-on-year decrease, bringing the bank’s earnings down to SAR 12.45 billion in the first nine months of 2023, from SAR 12.74 billion previously.
The financial maneuvering of both companies reflects the dynamic nature of the business and finance landscape in Saudi Arabia, where strategic partnerships and investments continue to shape the sector’s growth trajectory.