Tuesday, 12 December 2006

JEDDAH: The Knowledge Economic City (KEC), Saudi Arabia's giant knowledge-based industries (KBI) complex in Madina signed three major memoranda of understanding (with Siraj Capital Ltd and PMDC, Savola Group Co., and Malaz Group) as well as two key consultancy contracts (with HOK Canada, and IBI Group of Toronto) during Dubai's Cityscape.

"Given Madina's position as the cradle of Islamic creed and civilization, launching the Knowledge Economic City in Madina is a renaissance of sorts. We are very excited to be marking Cityscape with the signing of new partnerships with some of the world's best brands and contractors, all focused on this unique project," said Dr. Sami Baroum, CEO of Seera City Company.

The signing with Siraj Capital Ltd. and PMDC (Project Management and Development Company) signaled KEC's first Cityscape MOU.

The SR375M ($100M) MOU aims to develop the project's hospitality sector, including the construction of hotels, residential apartments and an exhibition/convention center. Total built-up area at KEC is planned to reach 9 million square meters, inclusive of 30,000 residential units that will cater to an estimated population of 150,000 people.

A SR500M ($133M) MOU was also signed between KEC and Savola Group Co. to develop Phase I of the project's unique retail complex with a gross lettable area of more than 100,000 sq m.

"This marks a significant step for Savola, which began as an edible oil refinery back in 1979 and has grown to become one of the largest diversified groups in the MENA region and the leader in retail development in Saudi Arabia, with more than 14 shopping centers throughout the country. Today's MOU with KEC will translate into a partnership in a high-growth industry that will be one of the main propellers of economic growth in the Kingdom of Saudi Arabia," said Abdulmalek Fathaldin, President of Real Estate at Savola Group Co.

Planned to recreate the old Souqs of Madina for what promises to be a one-of-a-kind shopping destination for the Muslim world, Phase I of the shopping center comprises more than 300 shops, a hypermarket, and major international anchors served by 4,000 parking spaces. This retail development comes as part of a mixed-use development complex that includes residential towers where more than 300 luxury apartments and condominiums enjoy the unobstructed view of the Holy Mosque's minarets. Phase II of the shopping mall will triple the retail space to 300,000 sq m.

"This retail development in KEC demonstrates our bullish view on the economic outlook for Madina. It will be the Group's second shopping center in the city. Our first, sized at 80,000 sq m, is expected to be completed by May 2007 and will establish our strong presence in this strategic city," added Fathaldeen.

Solidifying KEC's position as a future knowledge-based industrial hub, KEC signed a SR100M ($27M) MOU with Malaz Group to set up an ICT fund. The exercise lays the ground work for an Investment capital for KBI-related activities, such as software development, communications, and small business incubators.

In addition to the three MOUs with Siraj Capital and PMDC, Savola Group, and Malaz Group, KEC announced during Cityscape that HOK Canada, the world renowned architecture and planning firm will be in charge of conducting studies and technical revision of the city's conceptual master plan in order to generate a detailed master plan, with design guidelines and related material. HOK Canada has extensive expertise in the planning of mega developments in the Middle East, such as the Dubai Marina, DIFC, Dubai Studio City, Dubai Festival City, and in Riyadh the King Saud University and the King Khaled International Airport.

By Adel Al-Malki

© The Saudi Gazette 2006