Saudi Arabia's Binladin Group is raising a $500 million Islamic loan to fund a $6 billion real estate project, a report said.

Binladin group is developing the Abraj Al-Bayt project near the Grand Mosque in Makkah.

The project is to build seven towers with shops and apartments.

ABC Islamic, Arab Banking Corporation, Samba Financial Group, Riyad Bank, Commercial Bank of Qatar, Boubyan Bank and Arab National Bank are arranging the loan facility, the report said.

Abraj Al-Bayt is scheduled to be completed by 2009. Construction began in 2004.