Binladin to build Mecca towers with $6bn loan

An architect's rendering of the Abraj Al-Bayt project near the Grand Mosque in Mecca.

Saudi Arabia's Binladin Group is raising a $500 million Islamic loan for a $6 billion project to build seven towers with shops and apartments just outside Islam's holiest shrine in Mecca, two bankers said.

The family-owned Binladin Group is developing the Abraj Al-Bayt project near the Grand Mosque in Mecca. The towers will have residential and retail facilities for about 65,000 people, their floors covering 1.4 square kilometres, an area roughly the size of Monaco.

The five-year loan complies with Islam's ban on lending interest and is structured as an Ijara, or lease agreement, two officials at two arranging banks said, asking not to be identified.

ABC Islamic, Arab Banking Corporation, Samba Financial Group, Riyad Bank, Commercial Bank of Qatar, Boubyan Bank and Arab National Bank are arranging the facility.

Syndication is due to close in mid-December.

Abraj Al-Bayt is scheduled to be completed by 2009, a Binladin executive, who declined to be identified, told Reuters from Jeddah.

The build-operate-transfer project will cost about $6 billion, the executive said.

Construction began in 2004. (Reuters)

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (1)

Have your say

Binladin to build Mecca towers with $6bn loan: Boycott this disgraceful structure
Posted by Jihad Jaljouli, Jordan on Wednesday 12 December 2007 at 22:12 UAE time

I was amazed to discover that a huge towering complex is being planned for construction near the Mekka Holly Shrine (Al Harram Al Shareef).
I cannot understand how such ugly structures can be allowed to be built in such a location. Why not learn from people who respect their religious heritage? Look at how the Vatican in Rome stands out in its location where no other prominent building is permitted to exist.
I think all architects and engineers should boycott this awful structure.

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM