Arabian Business reported that Saudi developer Emaar Economic City has received SAR 5 billion loans from the kingdom's finance ministry to speed up construction of a project.

Two sources familiar with the deal said last year that the Saudi developer would receive the loan.

Emaar Economic City, affiliated to Dubai developer Emaar Properties, is spearheading the development of King Abdullah Economic City, a project aimed at diversifying the kingdom's oil based economy.

The developer said that the loan will serve to accelerate the development and construction of the second phase of King Abdullah City after the completion of phase one which was completed at the end of last year.

The loan has 10 year tenor with repayment starting after an initial 3 year grace period. The developer made guarantees against the loan by collateralizing a land area of 24 million and 724,000 square meters.

The project, aimed at building a new high tech city on the Red Sea coast with business, industrial, leisure and residential estates as well as a giant port has been dogged by delays and lower than expected demand from local and foreign investors.

(Sourced from www.arabianbusiness.com)