Emaar The Economic City (Emaar EC) has secured a loan deal with the Public Investment Fund (PIF) to raise an extra 1-billion-riyal ($267 million) loan to cover project costs and fuel growth.

The Saudi developer’s new financing is an amendment to a previous agreement signed in 2023 for the same amount.

The repayment of the new 18-month loan will be made as a single bullet payment, 24 months from the signing date of March 18, 2025, and will include both the principal amount and commission. It has provided mortgages valued at SAR 1.5 billion as security, along with promissory notes.

The agreement also includes an option for the PIF to convert outstanding amounts into shares in the company’s capital, subject to approval by the relevant regulatory authorities and the Extraordinary General Assembly. PIF is a 25% stakeholder in Emaar EC.

The company, which leads the master-planning and development of Saudi’s King Abdullah Economic City (KAEC), unveiled a SAR 8.7 billion Capital Optimisation Plan in September, which relies on strong partnerships and external investments to finance upcoming projects, its CEO told Zawya Projects.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com