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| Qiddiya is an entertainment and tourism megaproject in Riyadh, Saudi Arabia |
UK Export Finance supports Saudi Arabia’s Six Flags Qiddiya
City deal
UK Export Finance (UKEF) has unveiled its support for the
Six Flags Qiddiya City deal, marking its first Islamic Murabaha financing in
Saudi Arabia. The £550 million ($700 million) financing agreement with the
Qiddiya Investment Company (QIC) aims to facilitate the procurement of goods
and services from UK suppliers for the development of the Qiddiya City theme
park in Riyadh.
This strategic move by UKEF is expected to provide
significant advantages to UK businesses, particularly small and medium-sized
enterprises (SMEs), as they contribute equipment and services to the Qiddiya
City project. The collaboration involves Bouygues Bâtiment International and
Almabani General Contractors in the construction of the theme park.
Work
progressing at steady pace at Six Flags Qiddiya theme park near Riyadh
The Murabaha financing, the largest announced by UKEF to
date in the region, opens up broader access for UK exporters to projects
invested by the Public Investment Fund of the Kingdom of Saudi Arabia (PIF) in
large-scale infrastructure development.
UKEF has secured reinsurance from Italian ECA SACE S.p.A,
German ECA Euler-Hermes Aktiengesellschaft, and Dutch ECA Atradius Dutch State
Business N.V. Additionally, Crédit Agricole CIB, acting as an exclusive ECA
Coordinating Bank, Structuring and Documentation Bank, and Investment Agent,
along with a syndicate of banks including HSBC and BNP Paribas, supports the
financing.
Tim Reid, the Chief Executive of UKEF, highlighted the
agency's commitment to ensuring that British businesses capitalize on exporting
opportunities offered by Saudi Arabia's ambitious 'Vision 2030.' The Murabaha
financing deal not only creates business opportunities for UK suppliers but
also showcases UKEF's ability to unlock new sources of commercial finance for
transformative projects globally.
Qiddiya:
Saudi Crown Prince's vision for the next global entertainment marvel
This announcement follows UKEF's earlier partnership
agreement with the Saudi Arabian export credit agency, Saudi Export-Import Bank
('Saudi Exim'). The collaboration, aimed at supporting UK businesses and
securing export contracts, has led to the Six Flags Qiddiya City project.
The CEO of UKEF, Louis Taylor, emphasized the significance
of working with other export credit agencies globally, stating that collaboration
enhances the attractiveness of the UK's offer to overseas buyers. Saudi Exim
CEO HE. Saad Alkhalb highlighted the joint efforts to strengthen trade ties and
support export growth as part of Saudi Arabia's Vision 2030 strategy.
Source: https://www.ibtimes.co.uk/
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