Groundwork is proceeding full steam ahead on the ambitious SR99.7 billion ($26.6 billion) King Abdullah Economic City (KAEC) – the largest single private sector investment in Saudi Arabia – to the north of Jeddah. Site work is ongoing on the main access road as well as the excavation for the town centre’s marina and canal.

Currently taking shape at a pristine location off the Red Sea coast, the project is dubbed as a “New Age City being built today for tomorrow’s generation of Saudi citizen.”
“The main contractor of this mega project, Saudi Binladin Group (SBG), has already commenced earthworks and construction of the first of eight major gates and the first 15-km-long access road leading to the Presentation Centre. This centre, which is scheduled to open towards the end of the year, will offer investors the opportunity to view the city’s masterplans, models and various components as well as see the actual site of development,” says a spokesperson for the Dubai-based property giant Emaar.
An Emaar-led consortium made up of Saudi and UAE companies such as Aseer Company for Trade, Tourism, Industry, Agriculture, Real Estate and Construction and the Saudi Binladin group will be the main investors in the development, which is being spearheaded by the Saudi Arabian General Investment Authority (Sagia), the apex body responsible for inward investments into the kingdom.
“SBG is also dredging the first canal of the development, which is approximately 100 m wide and surrounded by a beautiful landscaped urban park and the Presentation Centre,” he adds.
Design work – which is under way in parallel with the launch of construction work – has already been completed on the entry gate, the first of eight major roadways, the Presentation Centre and the first Corniche Park and the Marina.
“Currently, we are in the detailed masterplan phase, following which we will submit a final package to the Jeddah Municipality for approval,” adds the spokesperson.
The project has already lined up a number of well-renowned architects and master planners to ensure its world-class status, including Parsons as the project manager responsible for utilities, infrastructure, port and industrial districts; WATG as the leader in the overall masterplan as well as having principle responsibility in resort, residential and commercial zones; and RSP as the master planning consultant. DG Jones is the quantity surveyor, OPM is charged with port planning and Cansult is the planning consultant for transportation.
The mixed-use KAEC will cover a greenfield 55 million sq m site, and will extend along a 35 km shoreline stretch, strategically located between the two holy cities of Makkah and Madinah and the commercial hub of Jeddah.
“The City is one of the most impressive projects Saudi Arabia has attempted in the new millennium. It will be a world-class location to work, live and play, in addition to being a shining example for Saudi Arabia’s transformation into a global economic powerhouse and further consolidating its position as the Middle East’s largest economy,” points out Amr Al Dabbagh, governor of Sagia.
The project comprises six distinct zones: a seaport; an industrial district; a financial island; an educational zone; a resort area; and an exclusive residential community offering high living standards.
Facilities within the City include a grand mosque, community centres, parks and recreational areas, shopping and commercial centres, health-care centres and schools.
The construction of this multistage development began in December last year.
“In the first three-year period, we will focus on the construction in two major areas – the port and the industrial district –, as well as two major beachfront hotels, the first golf course and associated villas, several thousand apartments and office buildings in the town centre. Several schools, a research and development campus, hospitals, fire and ambulance centres, public parks and municipal offices will also be constructed as part of the infrastructure facilities to support these areas,” says the Emaar spokesperson.
“The overall project will be done in stages with the first batch of businesses and residents moving into the City in 24 to 36 months,” says Issam Galadari, managing director of Emaar Saudi Arabia.
“This multistage development will complement the kingdom’s current economic expansion and at the same time create employment opportunities and attract foreign investment, trade, commerce and industry, “ adds Galadari.
The major infrastructure and utilities are expected to be completed by then, which will include roads, landscape, water, chilled cooling water, electricity, Internet and television.
Residents at KAEC will also be able to enjoy exclusive facilities such as clubhouses, major retail centres, daycare centres, seafront cornice parks and golf courses.
Commenting on the plans for the residential and business towers of the mega-project, the Emaar spokesperson says: “Looking at the master plan, we envisage a fairly low-density layout, with apartment towers being a maximum of 25 storeys. However the Financial Island is planned to be more iconic by introducing a 100-storey tower, which is in the final planning stages.”
The salient features of the six primary components of this mega project include:
Seaport: The focal feature of the project, the 2.6 million sq m seaport is similar in size to the world’s top 10 ports, such as Rotterdam, allowing 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.
Given its proximity to Makkah and Madinah, the port will have a dedicated Hajj 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: This 8 million sq m zone will cater exclusively to the requirements of small, medium and large-scale industry. The district will offer a choice of premises constructed to the highest specifications or to build from the ground up on a fully serviced site. Represented will be various sectors such as downstream petrochemicals, pharmaceuticals, research and development activities as well as a host of educational institutions. A sizeable area has also been set aside to develop accommodation for employees and their families.
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 will include a new exhibition and convention centre. Up to 60,000 professionals are expected to operate from the Financial Island on a daily basis. This district will also boast two iconic towers reaching up to 100 m (one being 100 storeysand the other 60-storeys) and offering striking views of the surrounding city skyline.
Residential area: This area comprises three residential districts. The first district wraps itself around a town centre, which will be a blend of the traditional and the modern. The second district, housing around 75,000 residents, will have a corniche as its main theme and 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. The third district will be a secluded residential island community with waterside villas offering direct waterside access and mooring facilities.
Resort area: The waterside resort area’s 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. It will also have facilities for water sports activities such as fishing, sailing, water-skiing and scuba diving.
Educational Zone: This zone comprises of a host of educational institutions such as universities, schools and research and development centres.
Prior to the launch phase, Sagia had taken a number of steps to ensure a successful launch of what is billed to be the biggest economic city in the Middle East, including a case study of similar examples such as Yanbu, Jubail, Dubai, Ireland and Malaysia.
“Constructing a private sector-financed economic city is one of the successful strategies to achieve a regional, balanced and sustainable development,” says the spokesman. “Cities have already been identified within a number of regions in Saudi Arabia to establish international, export-oriented industries including Hakkel (in the northwest), Jizan (in the south), Ras Elzor (in the east), Rabigh (to the west), and Hayel (in mid-north).
“A committee of international consultants was entrusted to study the economic feasibility of the project. With positive results, Rabigh city was chosen because it already has major ongoing projects, its strategic location on the Red Sea close to international maritime routes, and instant access to key cities within Saudi Arabia such as Makkah, Madinah, Yanbu and Jeddah.
KAEC is expected to not only provide exclusive living but also provide scope for major growth in the hospitality industry and attract foreign investors to Saudi Arabia over the coming years.
Commenting on the level of interest in the project, the spokesman says: “We are receiving numerous investor requests via our website and through Sagia. People are very keen in investing in this development and investors will receive many incentives, mainly from the Sagia Investor Service Centre, which will facilitate the provision of services to potential investors. The centre is Sagia’s “one-step” solution offering services such as trade licence application, industrial and residential land or units, visas, education for children and many more from a single window facility with requests being processed within days.”