Emaar Economic City, affiliated to Dubai developer Emaar Properties, is spearheading the development of KAEC, a project aimed at diversifying the Kingdom’s oil-based economy.

“The loan will serve to accelerate the development and construction of the second phase of King Abdullah Economic City after the completion of phase one, which was completed at the end of last year,” the developer said in a statement Wednesday.

The loan has a 10-year tenor with repayment starting after an initial three-year grace period, it said, adding the developer made guarantees against the loan by collateralizing a land area of 24.72 million square meters.

The project is aimed at building a new high-tech city on the Red Sea coast with business, industrial, leisure and residential estates as well as a giant port.

King Abdullah Economic City is among five so-called economic cities planned in the world’s largest oil exporter to speed up job creation for the country’s rapidly growing population.

“KAEC is a perfect complement to the Saudi Vision 2020, led by the pillars of economic diversification focused on manufacturing and exports, and creation of new jobs for Saudi nationals through the active involvement of the private sector,” Mohamed Alabbar, chairman of Emaar Economic City, said in the statement.

Spanning a total area of 168 million square meters, KAEC has six zones — the Sea Port, Central Business District, Industrial Zone, Educational Zone, Resort District and Residential Communities.