Saudi Arabia’s Jabal Omar Development Company has terminated a contract with the local investment bank Jadwa Investment to raise SR12.2bn (US$3.3bn) to finance the development of a real estate project in Mecca.
Jabal Omar says in a statement to the Tadawul, the Saudi Stock Exchange: "Jabal Omar Development Company announces it has terminated the contract with Jadwa Investment for having not been able to secure financing within the deadlines they have promised."
Jabal Omar signed an agreement with Jadwa in July 2008 for the bank to act as arranger for the financing of its scheme near the Grand Mosque. Jabal Omar is the developer and a joint venture of Saudi Binladin Group, and Saudi Oger is building the project.
Construction work on the project, which involves the development of 15 towers, began in September 2008. Completion of the project is expected in Q3 2011.
In a separate statement, Jabal Omar said it planned to issue a sukuk to its shareholders on June 10.
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