By Innovation-sa on May 8, 2018 in News

Saudi Arabia has finalized the transfer of ownership of the Kingdom’s $10 billion King Abdullah Financial District in the capital city to the finance ministry and the Public Investment Fund (PIF).

“It is a transfer (of ownership), not a transaction. The Ministry of Finance will take legal ownership and PIF will have the operating rights,” sources familiar with the matter told Reuters.

The King Abdullah Financial District (KAFD) project, owned by the Kingdom’s Public Pension Agency (PPA), is envisioned as a business hub that will lure financial and law firms, banks, and the Kingdom’s stock exchange and capital-market authority, but has been badly affected by construction delays, cost overruns and uncertainty about its future ownership.

Crown Prince Muhammed bin Salman, mentioned earlier this year in an interview that KAFD will host the G20 Summit in 2020 and the government’s new decision gives hope to the completion of the project.

The government’s decision to transfer ownership paves way for restarting work on the ambitious project, which has been at a stand-still for years. Cranes at the site haven’t been operated for at least three years.

Meanwhile, other sources have said that the government is planning to provide a fund of $613.3 million to complete the project and clear pending payments.