Media sources have revealed that the Public Investment Fund has decided to acquire ownership of the Riyadh Financial Center, which is valued at 37.5 billion riyals ($10 billion), However, no details of the deal have been announced, especially since reports have circulated that its value may exceed 30 billion riyals.
According to the U.S. news network Bloomberg, the Public Investment Fund controls the King Abdullah Financial District from the Public Pension Agency, Sources at the U.S. network also confirmed that the fund will appoint Helmy Ghosha as head of the financial center, which is facing significant delays in its completion.
In April of last year, the government pledged to rescue the project as part of the 'Vision 2030" economic reform plan, which aims to diversify the economy and reduce its dependence on oil. The Vision document demonstrated the government’s intention to transform the center into a special zone exempt from entry visas and directly linked to Riyadh Airport. It indicated that plans to build and deliver the center in a single phase caused a significant increase in the actual construction cost and delays in completion, and would result in an office supply exceeding Riyadh’s actual needs for the next ten years.
This area has received significant attention from Crown Prince, Deputy Prime Minister, and Minister of Defense Prince Mohammed bin Salman, who confirmed that the financial district will be rehabilitated and transformed into a free economic zone with visa exemptions and direct access to the airport, This comes after construction halted on the 73-building complex in northern Riyadh, which originally began in 2006 on a 1.6 million-square-meter site and was designed to serve as a major hub for financial and investment institutions in the region.
Prince Mohammed bin Salman said during his recent interview with Bloomberg that the government has restructured the financial district, confirming that 'the first phase will open next year, and Saudi Arabia intends to host the G20 summit at the center in 2020". Annual revenue for the first phase is expected to reach 240 million riyals ($64 million), but once the project is completed in all its phases, revenue will jump to 3.5 billion riyals. The project is currently 80 to 90 percent complete across all phases, has cost 30 billion riyals to date, and may require an additional 8 to 10 billion riyals to complete.
According to the plan, companies registered within the center will be able to issue visas and obtain licenses from the authorities through a dedicated office within the center without having to deal with the bureaucratic complexities of government agencies in the capital. The center will provide housing for approximately 50,000 people.
