RIYADH, (Reuters) – Saudi lender Riyad Bank 1010.SE said on Monday it would provide up to 1.4 billion riyals ($373 million) in financing for buyers into a property project partly led by Egypt’s Talaat Moustafa Group.
The bank signed an agreement on Sunday with Saudi-based property developer Thabat under which the lender will design Islamic-compliant packages for buyers into a project worth 6 billion riyals in the capital Riyadh.
Thabat is a joint venture between Talaat and Saudi real estate firm Al-Oula.
“Any buyer into the project has the right to get a loan from any bank of its choosing or buy in cash,” a bank spokesman said. “But Riyad Bank wants to get 1.4 billion riyals in financing for these purchases. This does not mean we are monopolising the financing.”
The announcement of the deal comes amid tight credit conditions due to a scarcity of foreign lending and greater caution by Saudi banks amid multi-billion-riyal troubles encountered by family-run firms Saad Group and Algosaiibi Group (AHAB).