Saudi Arabian Mining Co (Ma’aden) has signed a $5 billion financing deal with commercial banks and a state-owned investment fund to back its $7.5 billion phosphate production project in the kingdom, it said in a statement.

The project in the northern city of Waad Al Shimal is a joint venture between Ma’aden, Saudi Basic Industries Corp (Sabic) and Mosaic and is part of Saudi state efforts to create a stronger industrial base beyond oil refining and export. Phosphate is commonly used in fertilisers. 

A total of 16 local and international commercial banks as well as three export credit agencies signed the financing agreement on June 30.