Groundwork on the $26.6 billion King Abdullah Economic City, the largest single private sector investment in Saudi Arabia, got under way as bulldozers moved in on the 55 million sq m of greenfield site, north of Jeddah.

Issam Galadari, managing director of Emaar Saudi Arabia, said: “Following the project announcement, work on the site started immediately. The port will be the first area of the development that we will concentrate on, with other areas such as residential following quickly. The overall project will be done in stages with the first batch of businesses and residents moving into the city within 24 to 36 months.”
The project consists of six distinct components – a modern world-class seaport, industrial district, financial island, education zone, resorts and the residential area and is Emaar's largest outside its home market of the UAE.
The project was officially launched by The Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz Al Saud in the presence of Prince Sultan bin Abdulaziz Al Saud, Saudi Crown Prince, Minister of Defence and Aviation and Inspector General, and General Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and vice president and prime minister of the UAE.
The multi-stage development 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 Madinah.
Sagia (Saudi Arabian General Investment Authority), the apex body responsible for inward investments into the kingdom, is the prime facilitator for the development.
Central to the mega project is the creation of a 2.6 million sq m new Millennium Seaport similar in size to the world’s top 10 ports, such as Rotterdam, that would allow the world’s largest super vessels to drop anchor. The strategically-located 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 will have a dedicated Haj terminal that can receive over 500,000 pilgrims every season. In addition, there will be adjoining hotels, medical centres and other world-class amenities that will cater to the needs of the pilgrims.
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. It 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.
The waterside resort will serve up a 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, 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 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.
The Financial Island will be topped by two towers reaching up to 100 and 60 storeys offering 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 suq 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.
The sixth component is the Education Zone, which will comprise universities, schools and research and development centres.