King Abdullah Financial District Development and Management Company (KAFD DMC) has secured a 12 billion Saudi riyal ($3.2 billion) Murabaha financing facility, marking a significant milestone for the Riyadh-based development as it raises debt independently for the first time without direct backing from Saudi Arabia’s Public Investment Fund (PIF).
The financing package, structured as a 15-year senior secured facility, was arranged by a consortium of leading regional lenders. The banking group included Al Rajhi Bank, Saudi Awwal Bank, Saudi National Bank, Riyad Bank, Alinma Bank, Arab National Bank and Gulf International Bank–Saudi Arabia. Bank Albilad, Mashreqbank PSC and the National Bank of Kuwait participated as bookrunners.
The deal highlights the growing ability of major Saudi development projects to tap domestic capital markets on their own balance sheets. KAFD, one of the flagship urban developments linked to the kingdom’s economic diversification drive, has now demonstrated investor confidence beyond direct sovereign support.
Saudi Arabia’s ambitious Vision 2030 programme has generated a wave of large-scale infrastructure and real estate projects. However, international banks and institutional investors have generally remained cautious about financing many of these ventures, leaving local lenders to play a dominant role in providing funding.
As a result, domestic banking liquidity has become a critical source of capital for state-linked developers pursuing some of the kingdom’s most prominent transformation projects. The KAFD financing underscores the continued willingness of Saudi and regional banks to support long-term investments tied to the country’s economic reform agenda.
