Logo of Knowledge Economic City
Mohammad Al-Mubarak, CEO of Knowledge Economic City (KEC), said it is the time to finance major development projects, especially in Madinah, as the company's goals are aligned with Vision 2030.
In an interview with CNBC Arabia, Al-Mubarak added that the competitive interest rate is one of the main factors for completing the deal of securing financing worth SAR 782 million from the Tourism Development Fund (TDF) and Riyad Bank.
The grace period granted to the company for repayment is up to four years, the CEO said, pointing out that the option to refinance depends on the market situation at that time.
KEC has residential and hotel projects as well as other projects in the healthcare and education sectors, which are major enablers for building the city, the top executive said, noting that the company's land reaches 6.8 million square meters (sqm).
KEC has different projects and each one has a different financing method.
Part of the upcoming projects will be financed through banks, and the other will be through strategic partnerships and off-plan sales.
KEC announced today, Jan. 2, that all the requirements and documentations related to the financing agreement with the Tourism Development Fund and Riyad Bank were completed.
On April 22, KEC signed an agreement with Saudi Tourism Development Fund and Riyad Bank to provide SAR 782 million financing for the development of the Knowledge City Hub project, according to data compiled by Argaam.
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