JEDDAH: Residents and owners of property in Ruwais district which has been earmarked for development are to be paid over SR3 billion in compensation, according to Al-Ruwais International Company for Real Estate Development.
Experts, however, expect the figure to increase once a committee from the Jeddah Chamber of Commerce and Industry -- made up of officials from the Ministry of Justice and the Ministry of Finance -- carries out its evaluation to ascertain whether the amount is fair.
Following development, Al-Ruwais will be dramatically transformed into a modern, high-rise residential and commercial district that will replace the current warren of back streets and shabby villas built in the 1960s. The area will also have hotels, shopping malls, restaurants, cafes and a massive Ferris wheel. The development will also shift Jeddah's focus to the center, away from the city's fashionable north.
Tensions came to a head in May this year when local residents were handed eviction notices.
Residents described the eviction as unjust and complained they were not being compensated enough to relocate elsewhere in the city. They further called on Makkah Gov. Prince Khaled Al-Faisal to resolve the issue and expressed contempt at the media describing the district as an ashwa'iya (random neighborhood).
"Our ancestors have been living in this area for more than 350 years. How much money will compensate that rich history?" said one resident. "Even if we were to receive SR50,000 for every square meter of land, that much cash is not worth one iota of our memories of this place and its rich history," said another.
Today Al-Ruwais is the new heart of Jeddah, bordered by four main arteries: Andalus Street in the west, Palestine Road in the north, Madinah Road in the east and King Abdullah Road in the south.
The district is located halfway between two of Jeddah's well-traveled areas: the old city Balad and the upmarket Tahlia Street. The district is also close to the shore and nearby the prestigious Al-Hamra district.
Municipal officials estimate that 794,400 sq. meters of the district's 2.1 million sq. meters have been developed with little or no planning.
Compensation will be given for both land and the properties. Land will be valued according to size, location and proximity of roads, while buildings will be valued according to the quality of construction and the materials used.
By SULTAN AL-TAMIMI
© Arab News 2010
