Kingdom Holding's JEC seals deal with Binladin Group to finalize Jeddah Tower

Kingdom Holding Co. (KHC) announced that its associate, Jeddah Economic Company (JEC), signed today, Oct. 2, an agreement with Saudi Binladin Group (SBG) to resume the construction of the Jeddah Tower project.

In a statement to Tadawul, KHC explained that the deal is valued at SAR 7.2 billion. Around SAR 1.1 billion were already pre-paid for previously-done tower works. On-site construction is set to be finalized over a 42-month period.

Under the agreement, JEC will finance the remaining tower construction work through internal funding and bank facilities, it added, noting that there are no related parties to the deal.

Jeddah Tower is poised to be the world's tallest building, designed at over 1,000 meters in height. Merely 63 floors, out of the total 157, have been completed.

It will be part of the 1.3-million-square-meter (sqm) first phase of JEC's Jeddah Economic City, which spans a total area of approximately 5.3 million sqm, according to KHC.

The company also noted that the infrastructure development for the entire 1.3-million-sqm first phase has been executed, covering essential amenities such as electricity, water, sewage, flood drainage, and high-speed internet connectivity.

JEC is 33.6%-owned by KHC. It first commenced work on the Jeddah Tower project in April 2013. The project was planned for completion in 2018, but was previously rescheduled to 2020.

In May 2017, JEC said that the project's mass concreting was ongoing and that the tower's height reached the 54th floor.