Jabal Omar Development Company has entered into a SAR 2 billion ($533 million) Murabaha financing agreement with Saudi National Bank, marking another step in the developer’s efforts to strengthen its balance sheet and streamline long-term financing obligations.
The new facility, which carries a 15-year tenor, will be used to refinance existing debt under more favorable terms. The financing is backed by a mortgage on one of the assets within the sprawling Jabal Omar Project, a landmark hospitality and mixed-use development situated close to the Grand Mosque in Makkah.
According to the company, the refinancing arrangement is designed to improve the structure of its repayment commitments while supporting more sustainable cash flow management over the coming years.
Although the transaction does not involve related parties, it will still be presented to shareholders for approval at the company’s next General Assembly meeting. This is due to the fact that Jabal Omar Chairman Saeed Al Ghamdi also serves as chairman of Saudi National Bank.
The latest agreement follows a major debt restructuring completed last year. At that time, Jabal Omar revised a financing package originally secured in 2015, increasing the facility size and extending its maturity profile. The reworked arrangement, coordinated by Saudi British Bank (SABB) and Samba Financial Group, expanded the borrowing limit to SAR 5.9 billion—roughly a quarter higher than the original facility.
The refinancing underscores the company’s continued focus on optimizing its capital structure as it advances one of the Kingdom’s most prominent real estate and hospitality developments.
