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FINANCIAL NEWS
Jabal Omar, Nesma sign sign $8.8b deal
29 Dec 2010
(MENAFN) Abdul Rahman bin Abdul Qadir Faqih, chairman at Jabal Omar Development, says that the company signed a deal worth US$8.8 billion with Nesma & Partners Construction to begin the building of a big part of a project in Mecca that was long delayed, reported The National.
Faqih said that the first phase would begin with works near the Grand Mosque, in an area overlooking Ibrahim al Khalil Street. The contract had a two-year duration. According to the agreement, Nesma would build one hotel out of three hotels planned in the project.
Faqih also said that in addition to the hotels, overall development of the project would include hundreds of shops and air-conditioned prayer facilities for 100,000 worshippers. The project would also have the capacity of housing 87,000 people.
It is worth noting that the Makkah Construction and Development Company founded Jabal Omar four years ago this project. The company raised $537 million in 2007 by through an initial public offering. But the company, due to global credit tightening and decreases in oil prices, struggled to secure financing to fund the bulk of the project.
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