(Sukuk.net - Arab News) Jabal Omar Company yesterday signed a SR12.4 billion agreement with Jadwa Investment to finance a major real estate project in front of the Grand Mosque in Makkah.

The agreement was signed at Jeddah Hilton by Abdul Rahman Faqeeh, chairman of Jabal Omar Company, and Ahmed Al-Khateeb, managing director and CEO of Jadwa.

Prince Faisal bin Salman, chairman of Jadwa, said in a statement on the occasion that his company's efforts to win the financing of the project reflected its importance, as the project was located at the holiest place for Muslims across the world and would serve pilgrims who come for Haj and Umrah from different parts of the globe.

"Jadwa Investment, which was established two years ago and has a capital of SR6 billion, intends to finance large-scale projects in the Kingdom and provide companies with financial consultancy services. Our first project was with Saudi Aramco," Prince Faisal said.

Speaking to reporters after signing the agreement, Faqeeh said the pact was in line with a decision taken by his company's board of directors. "We have reached an agreement with Jadwa on arranging the necessary funds worth SR12.4 billion to implement the project in two phases," said Faqeeh, adding that the funding complied with Shariah regulations.

Faqeeh said the agreement reflected Jadwa's confidence in Jabal Omar Company, adding that Jadwa based its decisions on financial and market studies. He praised Jadwa's expertise, and its distinguished methodology and team of professionals.

Al-Khateeb said the Riyadh-based company has 150 professionals and four branches. He added that the agreement with Jabal Omar was for 18 months.

The finance provided by Jadwa is both long-term and short-term. Long-term financing will be through Islamic sukuk distributed throughout the world. "This is the second largest project for Jadwa in the Kingdom and we'll focus on projects in the Kingdom which is currently going through an economic boom," Al-Khateeb said, adding that Jabal Omar is the largest financing provided by Jadwa.

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