Kingdom Holding terminates fund agreement with Sumou, JEC

Logos of Kingdom Holding Co. (KHC), Sumo Holding Co. and Jeddah Economic Co. (JEC)

Kingdom Holding Co. (KHC) Sumou Holding Co., and Jeddah Economic Co. (JEC) have mutually agreed to terminate the SAR 6.8 billion ($1.8 billion) fund agreement today, effective today Jan. 23, 2025, with no obligations on any party.

The agreement was canceled as its primary purpose no longer exists, KHC said in a statement to Tadawul.

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However, Alinma Jeddah Economic City Real Estate Fund, currently wholly owned by JEC, will remain in place. KHC reaffirmed its commitment to supporting the project's development.

The fund’s main asset, JEC Tower, is making progress. Saudi Binladin Group was reappointed, and work resumed at an accelerated pace, as announced on Oct. 2, 2024. The technical and consulting teams are in place and have started on-site operations.

Concrete pouring for the 64th floor was completed in the presence of key partners, including KHC’s Chairman, Prince Alwaleed bin Talal. The project remains a top priority for stakeholders and aligns with Saudi Vision 2030.

KHC, Sumou Holding, and JEC signed an agreement in July 2024 to establish a new fund worth SAR 6.8 billion to acquire Alinma Jeddah Economic City Fund, which is currently wholly owned by JEC, according to Argaam’s data.