An industrial city and a modern seaport will be the major components of the new King Abdullah Economic City, the single largest private sector investment in Saudi Arabia.

The city is being built at a pristine location off the Red Sea in the north of Jeddah with an investment of SR100 billion ($26.6 billion).
The Dubai-based Emaar Properties, the world’s largest real estate company in terms of market capitalisation, is the master developer of this ambitious project. Saudi Arabian General Investment Authority (Sagia), the apex body responsible for inward investments into the kingdom, is the prime facilitator for the development.
The King Abdullah Economic City will be a multi-stage development with the construction work having already begun.
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 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 city will have six distinct components – a modern world-class Seaport, 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.
Sagia’s Investor Service Centre will facilitate the provision of services to potential investors. The centre is Sagia’s “one-step” solution aimed at minimising the number of formal steps associated with investment in the kingdom.

Seaport
Central to the mega project is the creation of a 2.6 million sq m 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. 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 Haj 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.

Industrial District
The second component of the city – The Industrial District – will cover 8 million sq m, 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 set aside to develop accommodation for employees and their families.

Resort
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.
 
Financial Island
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 sq m 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 daily basis.
Financial Island will be topped by two towers reaching up to 100 and 60 storeys that offer compelling views of the surrounding city skyline.

Residential
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 sq m 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.

Education Zone
The sixth component is the Education Zone which comprises universities, schools and research & development centres.
Headed by Emaar, a group of giant Saudi and UAE companies has been formed to 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. As much as 30 per cent of the equity of the company will be offered in an IPO in due course.
“It is no coincidence that the city is being formally launched, as Saudi Arabia 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,” said Amr Al-Dabbagh, Sagia Governor.
He said this project will have a major role in attracting Saudi and foreign investment and assured that all necessary licensing procedures will be done within one week of application in coordination with other concerned government departments.
Al-Dabbagh also stressed that the project will fulfil Sagia’s ambitious plans and it will help promote Saudi Arabia as an international investment destination while pushing forward the Saudi economy into a new phase of adapting international standards.
The private sector involvement in this project will create huge job opportunities, with no additional cost for the Saudi government except for the services and facilities, which will be provided by Sagia and other government departments.
“It is also in keeping with the spirit of co-operation that binds the fraternal countries of the GCC that the city brings closer Saudi Arabia, the UAE and the Emirate of Dubai to work towards a common endeavour. Sagia is proud to be part of this important milestone in the epoch-making moment for our kingdom and the GCC,” Al-Dabbagh said.
Mohamed Ali Alabbar, Emaar chairman, said: “The six components 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 direct investment (FDI) into the kingdom and thus more job opportunities for Saudi youth.”