Jabal Omar mulls new products to raise liquidity, says CEO

Jabal Omar Development Co. is considering many products in partnership with investment firms to inject liquidity into the company and enhance its business profile in the long term, chief executive officer Yasser Al-Sharif, told Al-Arabiya TV on Tuesday.

Many products are being planned with investment firms to provide innovative financing solutions for mega projects, Al-Sharif said on the sidelines of the World Economic Forum, citing the company’s deals with Albilad Capital and Alinma Makkah Fund.

Banks are showing greater tendency to finance contractors and major developments, however, this is still insufficient.

Al-Sharif said that Jabal Omar’s sukuk have received strong turnout by investors, adding the outlook for Makkah and economic returns are positive.

Commenting on a potential merger with Umm Al Qura for Development & Construction, Al-Sharif said the target consolidation is significant for both companies, expecting Makkah to benefit the most from the deal.

“The asset valuation process will be huge based on the deal size,” Al-Sharif concluded.

In September, the developer inked a nonbinding six-month memorandum of understanding with Umm Al Qura for a potential merger, Argaam reported.

Goldman Sachs Saudi Arabia was appointed as financial adviser on the merger deal.