The Saudi government have confirmed the terms of the transfer of ownership of Riyadh’s $10 billion financial district to the finance ministry and the Public Investment Fund (PIF).
This transfer allows the work on King Abdullah Financial District (KAFD) to be continued, as the project began in 2006. The district will house banks and the financial regulator’s headquarters across an area roughly 380 acres.
The project, run by the Kingdom’s Public Pension Agency, has suffered severe delays, cost overruns and uncertainty about future ownership. Equipment at the site has been still for three years.
“It is a transfer (of ownership), not a transaction. The Ministry of Finance will take the legal ownership and PIF will have the operating rights,” said one of the sources.
The plan envisions KAFD as a special business zone with separate regulations and visa exemptions.