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Red Sea City signals new era of Gulf primacy

Riyadh fulfils promise
KUWAIT CITY: The slogan "I am a Gulfian and the Gulf is my way" is not an imaginary or emotional one. It is a slogan which is connected with the actual implementation of projects on the ground. On Dec 20, 2004 Riyadh announced the launch of the "King Abdullah Economic City," a mega project licensed by the Saudi Arabian General Investment Authority (SAGIA). The new city, which is estimated to cost 100 billion Saudi riyals ($27 billion), will be built on 55 million square meters with a 35 km shoreline close to the industrial city of Rabegh, which is a one-hour drive from Jeddah.

King Abdullah Economic City, which is to be implemented jointly by Emmar Company of UAE and Aseer Company of Saudi Arabia, will have six distinct components -- a modern world-class seaport, an industrial district, a financial island, an education zone, resorts and the residential area. A special ceremony was recently held in Riyadh under the patronage of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz to launch the project. Crown Prince of Dubai and Defense Minister of UAE Sheikh Mohammed bin Rashid Al-Maktoom attended the event. The project will create 500,000 new jobs and the first batch of companies and residents are expected to move into the new city within 24-36 months.

Watchers of Saudi Arabia's history are concerned with important meanings and political indications of this project as it is shifting the region into a phase of optimism and practical action, which will benefit all GCC countries because King Abdullah announced earlier that its budget surplus will be utilized to build several projects in Saudi Arabia and outside to benefit the Gulf region. Political observers say by launching this huge project, which will strengthen the already strong ties between Saudi Arabia and UAE, King Abdullah has fulfilled his promise that development projects are meant to help people help themselves. In other words such projects are aimed at teaching people how to fish rather feeding them with free fish. Sources say more such projects will come in the future to fortify the ties among all GCC countries.

With an eye on equipping his people and making the best use of the current budgetary surplus King Abdullah has given instructions to end the giving away of unnecessary gifts and money, free flights being used by some powerful people, ease the procedures for investment in other GCC countries, and eliminate bureaucracy and routine in the system. King Abdullah has put his reform programme into action. He wants to establish commercial courts to protect the rights of investors and attract foreign investments. After some industrialists complained about the Saudization of jobs, the Saudi Monarch is studying ways to improve the implementation of this policy without affecting the industrial sector. The Custodian of the Two Holy Mosques has signaled the beginning of a new and optimistic era, which will include wise spending and investment of the revenue surplus on some magnificent projects like the King Abdullah Economic City, which Sheikh Mohammed bin Rashid described as "a jewel in crown of the Saudi leadership."

By Ahmed Al-Jarallah

© Arab Times 2005