The project was previously scheduled to be completed in 2011 but was delayed due to the global economic recession, informed sources told Arab News. Saudi Binladin Group and Saudi Oger, which were the project’s previous contractors, could not complete it.
“Earlier we had a plan to complete the project in one go by 2011. Because of the delay, we have decided to implement it in phases,” said a source close to the company.
Saudi Binladin and Saudi Oger said they were unable to complete the project on time because of the economic crisis that hit the world in 2008 that made it difficult for them to receive adequate funds. They also blamed the rocky terrain for the delay.
The project includes construction of nine hotels and 89 residential apartments in the first phase and four hotels and 72 apartments in the second phase.
In October 2010, Jabal Omar Company received agreements for bridge funding collectively worth SR1.35 billion from five national banks: Al-Rajhi Bank, National Commercial Bank (NCB), Bank AlJazira, Saudi British Bank (SABB) and Saudi Hollandi Bank.
