In a significant development, three Saudi companies – Kingdom Holding Company, Sumuo Holding Company, and Jeddah Economic Company (JEC) – have acquired the Al Inma Jeddah Economic Fund, which owns the Jeddah Tower, set to be the world’s tallest tower, in a deal worth $1.8 billion (SAR6.8 billion).
“The acquisition of Al Inma Jeddah Economic Fund is a strategic move to further develop the Jeddah Tower project, which will be an iconic landmark and a symbol of Saudi Arabia’s engineering prowess,” said Prince Alwaleed bin Talal, Chairman of Kingdom Holding Company.
The Jeddah Tower, located in the Obhur district, will stand over 1,000 meters tall and will be part of a larger development project spanning 1.7 million square meters. The project will feature a Four Seasons Hotel, shopping mall, commercial offices, and luxury residential units.
“We are excited to be part of this prestigious project, which will contribute significantly to the growth and development of Jeddah’s economy,” said a representative from Sumuo Holding Company.
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The acquisition marks a significant milestone in the project’s history, which has faced delays and controversies in the past. Construction of the tower began in 2013 but was halted in 2017 due to disputes between Prince Alwaleed and the contractor, Saudi Binladin Group.
“It will happen, but I’m not going to say it’s 100 percent,” an investment ministry official said in October, when asked about the project’s timeline for completion.
With this acquisition, Kingdom Holding Company will own 40% of the new fund, according to a note on the Tadawul exchange. The deal is expected to boost the project’s momentum and bring it to fruition.
“This acquisition demonstrates our commitment to investing in strategic projects that contribute to the growth and development of Saudi Arabia’s economy,” said Prince Alwaleed bin Talal.