Riyadh, 20 Dec. ,2005(WAM)-- King Abdullah Economic City, a SR100billion ($26.6 billion) project , was launched here today in the presence of The Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz Al Saud , Prince Sultan bin Abdulaziz Al Saud, Saudi Crown Prince, Minister of Defence and General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister.

"The King Abdullah Economic City will be another jewel in the crown for SaudiArabia and a shining example of what can be achieved for the common good when two brotherly nations get together for ever closer co-operation," said General Sheikh Mohammed, adding: "I am certain that what will be achieved through this project will create its own chapter in the annals of the GCC."The King Abdullah Economic City will be a multi-stage development with construction beginning on Wednesday, 21 December, 2005. This mega project will closely integrate itself into 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 500,000 employment opportunities in the various industries and service-oriented companies that will open in the City.

The 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 square metres of greenfield land with a 35 km shoreline close to the industrial city of Rabegh has been earmarked for the masterdevelopment. The City will have six distinct components - a modern world-classSeaport, Industrial District, Financial Island, Education Zone, Resorts and The Residential Area. Completion of 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.

Emaar Properties, the world's largest real estate company in terms of market capitalisation, is the master developer of this ambitious project, the biggest outside of its home market of the UAE. SAGIA (Saudi Arabian General Investment Authority), the apex body responsible for inward investmentsinto the Kingdom, is the prime facilitator for the development.

SAGIA's Investor Service Centre will facilitate the provision of services to potential investors. The Centre is SAGIA's "one-step" solution aimed at minimizing the number of formal steps associated with investment in the Kingdom.

Central to the mega project is the creation of a 2.6 million square metre newMillennium Seaport similar in size to the world's top 10 ports, such as Rotterdam, that would allow even the world's largest super vessels to drop anchor. With its strategic location on the Red Sea and the instant access to key cities within Saudi Arabia, the port will have a designated area for light industry and logistics and be a natural platform for onward movement of goods to Europe, Africa, Asia and beyond. The port will have an integrated transport system with seamless high speed transitions from sea to rail, road and air, making the City the main gateway to the central and eastern provinces as well as the entire Kingdom.

The port, with its close proximity to the two Holy Cities of Makkah and Madina, will have a dedicated Hajj terminal that can receive over 500,000 pilgrims every season. To cater to the pilgrims' every need, there will be adjoining hotels, medical centres and other world-class amenities.

The second component of the City - The Industrial District - will cover 8 million square metres, and is exclusive to the requirements of a range of manufacturers - small, medium and large scale industry. They will represent sectors such as downstream petrochemicals, pharmaceuticals, research and development activities as well as a host of educational institutions that will prepare young Saudis for the jobs that the City will bring in. A sizeable area has also been setaside to develop accommodation for employees and their families.

The waterside Resort will serve up a most compelling mix of waterfront hotels and boutique residences. The master plan envisages 3,500 well-appointed hotel and residential bedrooms and suites, premium villas, plus an extensive retail element and an international-class signature 18-hole golf course and an equestrian club.

The fourth element of the City will be the Financial Island, conceived to be a 'city within a city' for financial institutions. The Island will offer 500,000 square metres of office space for the leading international and regional financial entities, business hotels and a new exhibition and convention centre.

Up to 60,000 professionals are to operate from the Financial Island on a dailybasis.

Financial Island will be topped by two towers reaching up to 100 and 60 storeysthat offer compelling views of the surrounding city skyline.

Three residential districts form the fifth component of the new City.

The first district wraps itself around a town centre, which will be a blend of the traditional and the modern. The second district will have a corniche as its main theme. It is in keeping with this concept that the district will 'curve' around a top-of-its-class marina and yacht club with 450 boat moorings.

The souq and retail elements will contribute 350,000 square meters of prime space. Around 75,000 residents are expected to live here. The third district will be a secluded residential community set on an island on a choice water location.

The sixth component is the Education Zone which comprises of Universities, Schools and Research & Development Centres.

Headed by Emaar, a group of giant Saudi and UAE companies has been formedto facilitate investments for the project. The group includes companies such as: Aseer Company for Trade, Tourism, Industry, Agriculture, Real Estate and Construction, as well as Saudi Binladen Group. 30% of the equity of thecompany will be offered in an IPO in due course.

"It is no coincidence that the City is being formally launched, as SaudiArabia has now become a part of the World Trade Organisation.

The City is one of the most impressive projects Saudi Arabia has attempted in the New Millennium. The fact that we were able to move ahead with this project on a fast track basis shows that Saudi Arabia is moving ahead with confidence to transform the economy and build more sustainable prosperity for its citizens," commented Amr Al-Dabbagh, SAGIA Governor.

Mohamed Ali Alabbar, Emaar Chairman, said: "The six components - seaport, industrial district, education zone, financial island, resorts and the residential area - of the City - 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 DirectInvestment into the Kingdom and thus more job opportunities for Saudi youth.

"This City will be a world class location to work, live and play and a shining example for Saudi Arabia's transformation into a global economic powerhouse and further consolidate its position as the Middle East's largest economy." "In the past decade, Emaar Properties has built experience and knowledge on how to transform the power of ideas into reality. The company is now honoured to be part of the great leap forward that brings together the people of Saudi Arabia and the UAE," Alabbar said.