Saudi Arabia, the Arab world’s wealthiest economy, is to open the world’s largest gold factory in Jeddah by the end of the year.

The factory will span 22,000 sq m and is already under construction in Jeddah, said the CEO of Taiba for Gold and Jewels Company, the firm behind the plan.

The factory will become a reality by the end of this year, Essam Aziz Sultani Al Ashrafi, was quoted as saying by the Saudi press. Once fully operational it will create 800 jobs.

Saudi Arabia is one of the world’s largest consumers of gold. In June 2010, the World Gold Council reported that gold reserves held by the Saudi Arabian central bank more than doubled from 143 tonnes to 322.9 tonnes.

The kingdom currently holds the largest reserve of gold in the Arab world. Globally, Saudi Arabia ranks 16th, ahead of the UK, Spain, Austria, Belgium, Singapore and Sweden. Only 13 other national central banks, the International Monetary Fund, and the European Central Bank have higher reported reserves.

Taiba has been operating in the market for over 25 years and distributes to over 2,500 stores across the kingdom.