Marakez for Real Estate Investment, a subsidiary of Saudi Arabia’s Fawaz Alhokair Group, has fully paid off Mall of Arabia’s EGP 2 bn credit facility to the Commercial International Bank (CIB) and other banks, “enabling the mall to operate debt free,” Invest-Gate reports.

Originally funded in 2008, the credit facility was directed towards finalizing the construction of Mall of Arabia, which the company plans to inaugurate its second phase by the end of October, according to the company’s statement. 

“Marakez will reinvest Mall of Arabia’s revenues back into the company,” the developer noted.

Located in 6th of October City, Mall of Arabia’s new expansions will add 40,000 square meters to the mall’s current gross leasable area (GLA) of 110,000 square meters. The second phase comes with an international retail chain that includes IKEA, Polo Ralph Lauren, Hackett, Calvin Klein, “in addition to a one-of-a-kind dining experience with Egypt’s premium local brands, all gathered under phase II’s food hall.”

The mall’s debt-free status comes as “as a vote of confidence from its shareholders in the Egyptian real-estate sector and a reaffirmation of the strength and stability of the Egyptian economy on the back of the government’s recent economic reform program,” Marakez stated.

It may also enable the company to go on with its expansion plans and development of its current projects, including District 5, its first mixed-use project in New Cairo, and the first residential towers in 6th of October City, “AEON.”

In its statement, Marakez revealed that it is currently developing two shopping malls – Mall of Tanta with 45,000 square meters of GLA at the Gharbia Governorate and Mall of Kattameya (100,000 square meters of GLA) in New Cairo.