ML-Implode News - Saudi $10 Billion Financial District Is Missing One Thing: Banks

Not a single financial institution has agreed to take space in the 73 buildings the state is constructing at the King Abdullah Financial District, according to Waleed Aleisa, chief executive officer and project manager of the district at developer Al Ra'idah... "Saudi banks want to own their own buildings and want to pay as little as possible," Aliesa said in an interview. "They don't appreciate the brand as much as we see in the West, where banks will pay a premium to be in financial hubs."
As Saudi Arabia prepares for a post-oil future by boosting other industries, its plan to strengthen Riyadh's position as a financial center is plagued with delays,Â cost overruns and a failure to understand the needs of local banks, according to Aliesa. Attracting financial clients now will be challenging given that the work, about 70 percent finished, has largely ground to a halt and the developer is considering replacing the main contractor.''

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Saudi $10 Billion Financial District Is Missing One Thing: Banks