JEDDAH, Saudi Arabia—Jeddah Economic Co., co-founded by Kingdom Holding Co., signed a deal on Sunday with Saudi Arabia's Alinma Investment to initiate a SAR8.4-billion (approximately US$2.23 billion) fund. Initially, the fund will be used to develop the 370-acre first phase of the Jeddah Economic City project and finish construction work on Jeddah Tower, which is planned as the world's tallest building.

Alinma Bank will finance the fund, to be known as Alinma Jeddah Economic City Fund and managed by Alinma Bank entity Alinma Investment, while JEC will be the master developer of projects that will draw on the fund's credit lines. Prince Alwaleed Bin Talal, chairman of Kingdom Holding, will chair the fund's board.

Prince Alwaleed says the agreement with Alinma is part of JEC's drive to diversify its sources of funding for Jeddah Tower and Jeddah Economic City. "Our cooperation with the banking sector is a manifestation of just how strongly we believe in this ambitious project, which is set to become the pride and joy of every Saudi, especially those who reside in Jeddah, and will become an iconic urban center that will take the city to the next level, both regionally and globally."

JEC CEO Mounib Hammoud says that phase one of the project is expected to be completed on schedule now that funds have been secured. It will accommodate more than 35.5 million square feet of "modern, multipurpose structures, which will form the nucleus of northern Jeddah's downtown, bolstering the city's standing in the world." Currently at 26 stories, Jeddah Tower will reach more than 3,000 feet in height when completed.