It is the largest single private sector investment in Saudi Arabia, a place like no other. Groundwork is underway on the SR100 billion ($26.6 billion), King Abdullah Economic City, off the Red Sea, north of Jeddah.
The developers
Emaar Properties, the world's largest real-estate company in terms of market capitalisation, is the master developer of this ambitious project, while SAGIA (Saudi Arabian General Investment Authority), the apex body responsible for inward investments into the kingdom, is the prime facilitator for the development.
"Following the project announcement, work on the site started immediately, says Issam Galadari, Managing Director, Emaar Saudi Arabia. "The port will be the first area of the development we will concentrate on with other areas such as residential following quickly. The overall project will be done in stages with the first batch of businesses and residents moving into the city in a period of 24 to 36 months." According to him, the multi-stage development will complement the kingdom's current economic expansion and at the same time create employment opportunities and attract foreign investment, trade, commerce and industry.
The components
King Abdullah Economic City will be a mixed-use development located north of the commercial hub of Jeddah to ensure easy access from the holy cities of Makkah and Madina. A massive 55 million sq m of Greenfield land with a 35 km shoreline close to the industrial city of Rabegh has been earmarked for the master development.
The project consists of six distinct components Millennium Seaport, Industrial District, Financial Island, Education Zone, Resorts and The Residential Area.
The first stage of construction will be the 2.6 million sq m world-class Millennium Seaport. An integrated transport system with high-speed transitions from sea to rail, road and air will make the city the main gateway to the central and eastern provinces, as well as the entire kingdom. With its strategic location on the Red Sea, the port will feature a designated area for light industry and logistics, and will be a hub for the onward movement of goods to Europe, Africa, Asia, and beyond. A dedicated Haj terminal will be built at the port to receive over 500,000 pilgrims every season. Hotels, medical centres and other world-class amenities will also be built close by to cater to the needs of pilgrims.
The 8 million sq m Industrial District is designed to cater to a range of small, medium and large-scale manufacturers representing sectors such as downstream petrochemicals, pharmaceuticals, R&D activities, as well as educational institutions. An area has also been set aside to build accommodation for employees and their families. Meanwhile, Financial Island, conceived as a 'city within a city' for financial institutions, will offer 500,000 sq m of office space for international and regional financial entities and business hotels. It will also feature an exhibition and convention centre. Up to 60,000 professionals per day are expected to operate from the financial island, which will incorporate a 100-storied tower and a 60-storied tower.
Meanwhile, the resort district will incorporate a mix of waterfront hotels, boutique residences and villas, as well as a retail element, an 18-hole golf course and an equestrian club. There will also be three residential districts. The first district will be designed as a town centre and will combine traditional and modern design.
The second will have a corniche as its main theme and will incorporate a marina and yacht club with 450 boat moorings. The souq and retail elements will contribute 350,000 sq m of prime space. The third district will be designed as an island-based residential community. Finally, the Education Zone, comprising universities, schools and R&D centres, will complete the city.
"The six components will work seamlessly together to make it an important global destination and a focus area for the development of both heavy and light industry, services in various sectors and bring in a greater level of local investment as well as regional and international foreign direct investment into the kingdom," says Mohamed Ali Alabbar, Chairman, Emaar. Indeed, a city like no other!
© Construction World 2006
