Riyadh, Saudi Arabia — Jabal Omar Development Company signed a Murabaha financing agreement with Al Rajhi Bank for SAR 1.9 billion ($509 million).Â
The term of the facility is two years, Jabal Omar said in a statement to Tadawul, according to Argaam. Â
To secure this facility, the real estate developer provided a number of representations and warranties, and pledged land plots in the Jabal Omar project in favor of the Ministry of Finance, Argaam reported.
The facility will be used to accelerate the completion of project phases under construction and pay financial obligations.
Abdul Aziz Al-Rajhi a relative of Al Rajhi Bank’s Board Chairman, and Thalib Al-Shamrani, a senior executive at the Ministry of Finance, have an indirect interest in the agreement. Â
The agreement will be presented to the next general assembly for approval, Jabal Omar said.