Emaar, The Economic City appoints HSBC Saudi Arabia Ltd as financial advisor for KAEC infrastructure work

(L-R) Fahd Al-Rasheed and Timothy Gray sign the agreement in Jeddah.

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Emaar.E.CEmaar.E.C

HSBC Saudi ArabiaHSBC Saudi Arabia

Emaar.E.CEmaar.E.C plans to offer multiple Build-Own and Operate (BOO) opportunities to private sector companies to undertake the infrastructure work in the coming months. HSBC Saudi ArabiaHSBC Saudi Arabia Ltd will play a key role in establishing international guidelines in realising these contracts.

Emaar.E.CEmaar.E.C

HSBCHSBC

He added: "Mandating HSBCHSBC is an important step towards developing the essential infrastructure within KAEC. This is based on an internationally accepted model which maximizes interest from commercial partners and assures timely delivery in-line with our overall development schedule."

Mr Timothy Gray, CEO of HSBC Saudi ArabiaHSBC Saudi Arabia Ltd., said: "We are very pleased to be working with Emaar.E.CEmaar.E.C on this important and ground-breaking initiative to diversify the economic base in Saudi Arabia. This is further evidence of HSBCHSBC's capabilities in the investment banking sector and our continued commitment to the development of the Kingdom."

KAEC is the single largest private sector-led project in the region, spreading over 168 million sq m and has six key components: the Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities. Work is progressing according to schedule on the first phase of KAEC.

Emaar, The Economic City (Emaar.E.C)Emaar, The Economic City (Emaar.E.C), established in September 2006, is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world's largest property developers, and a number of high profile investors from Saudi Arabia. Emaar.E.CEmaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.

Emaar.E.CEmaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City (KAEC), a project being built on a pristine location off the Red Sea in the north of Jeddah. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC.

KAEC, a New Age City being built today for tomorrow's generation of Saudi citizens, has six components - sea port, industrial district, educational zone, central business district with commercial, mixed-use, retail outlets and financial island, resorts and residential area.

The mega-project works closely with the Kingdom's on-going drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents.

© Press Release 2008