Emaar will lead consortium, including Saudi Bin Laden and Aseer, to develop the $26.6B destination
Dubai: Emaar Properties, a real estate developer based in Dubai, will lead a consortium, including Aseer and Saudi Bin Laden Group, to develop the $26.6 billion (Dh97.70 billion) King Abdullah Economic City that was launched yesterday.
About 30 per cent of the equity of the consortium will be raised through an initial public offering.
Emaar's shares jumped 2.4 per cent to Dh25.25 following the announcement.
Saudi Arabian General Investment Authority (Sagia), the apex body responsible for investment into the Gulf kingdom, is the prime facilitator of the development.
The City will have six distinct components: a world-class seaport, an industrial district, a financial island, an education zone, resorts and the residential area.
The project will be completed in stages with the first batch of businesses and residents moving into the City in two to three years.
Central to the mega project is the creation of a 2.6-million-square-metre new Millennium 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.
This is the single largest mixed-use development project ever undertaken in the Gulf region and reflects a cross-border cooperation between two Gulf neighbours that are committed to a common market.
"It means a recognition of Emaar's expertise. Emaar is a pioneer in master-planned developments and Saudi Arabia will greatly benefit from Emaar's expertise," said Dr. Khalid Maniar, an investment adviser and managing partner of AGN MAK.
"This could be the beginning of an era of cross-border joint collaboration across the GCC that will strengthen the region and help its planned economic integration in the future."
Three residential distri-cts will form the fifth component of the new City. The first district wraps 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 metres of prime space. About 75,000 residents are expected to live there.
The third district will be a secluded residential community on an island on a choice location.
Amr Dabbagh, Sagia governor, said: "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.
By Saifur Rahman, Staff Reporter
© Gulf News 2005
