Alwaleed: Jeddah Tower is on a solid strategic path

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Updated 07 November 2012
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Alwaleed: Jeddah Tower is on a solid strategic path

JEDDAH: Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), held the 3rd meeting in Jeddah with the Jeddah Project partners - Saleh Bin Laden, Samaual Bakhsh and Abdulrahman Hassan Sharbatly.
Following the meeting, Sharbatly hosted a dinner in honor of the prince and the board members. Talal Al-Maiman, executive director, Development and Domestic Investments, chairman and CEO of Kingdom Real Estate Development Company (KRED), a board member of KHC and Jeddah Economic Company (JEC), Shadi Sanbar, KHC's CFO, Waleed Batterjee, CEO of JEC, Hassan Abdulrahman Sharbatly, Husam Hamdy, general manager of Saudi Bauer, and Nabil Batrawi, project director SBG, also attended the meeting.
During the meeting, Prince Alwaleed and the partners discussed the latest developments and progress of the mega Jeddah project. In addition, the piling contract with the value of SR 152,856,091 was awarded to Saudi Bauer under the supervision of Saudi Bin Laden Group (SBG), the main contractor. Saudi Bauer was selected based on its expertise and renowned worldwide specialization in this field.
Prince Alwaleed commented: "Jeddah Tower is on a solid strategic path."
Al Maiman said: "The vision of constructing the tallest tower in the world in Jeddah belongs to Prince Alwaleed, who was closely involved in the selection of the scheme currently under design. The decision of the partners to build the world's tallest building further demonstrates their belief in investing in this nation."
In April 2012, Prince Alwaleed who initiated and has been the driving force behind the decision to build the world's tallest tower in Jeddah, in the Kingdom of Saudi Arabia, announced the investment of SR 1.5 billion from the SBG for a 16.63 percent stake in (JEC), owner of the Jeddah Mega Project that includes the world's tallest tower (Kingdom Tower) with a height of over 1,000 meters at a total cost of SR 4.6 billion. The Kingdom Tower will be the centerpiece and the first construction phase of Kingdom City Jeddah. The overall estimated cost of the entire Kingdom City project is anticipated to be SR 75 billion ($20 billion).
JEC new urban development of more than 5.3 million sqm of land in the north of Jeddah overlooking the Red Sea and Obhur Creek. The partners of JEC are Kingdom Holding Company with a stake of 33.35 percent, Saudi Bin Laden Group with a 16.63 percent stake, Abraar International Holding Company represented by Samaual Bakhsh, with a stake of 33.35 percent, and prominent Jeddah businessman Abdulrahman Hassan Sharbatly with a stake of 16.67 percent. The final license to construct the tower was formally received from the Jeddah municipality in February 2012.


Saudi Arabia’s economy in a ‘sweet spot’, says US bank

Updated 1 min 46 sec ago
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Saudi Arabia’s economy in a ‘sweet spot’, says US bank

  • Bank of America Merrill Lynch Global Research: “With a more entrenched current account surplus possible this year, FX reserves could increase.”
  • “Reforms are likely to broadly proceed, even at these levels of oil prices, although spending may increase further above baseline expectations.”

LONDON: The Saudi Arabian economy is in a “sweet spot”, with higher oil prices allowing the Kingdom to boost spending while not having a significant impact on the country’s fiscal balance, according to Bank of America Merrill Lynch Global Research.

“Our meetings on Saudi Arabia comfort us in our view that the economy is in a sweet spot. Higher oil prices are allowing the focus on boosting activity not to materially impact fiscal balances,” the note said, published following the IMF and World Bank Spring meetings held in Washington DC this month.

“With a more entrenched current account surplus possible this year, FX reserves could increase this year,” the note said.

The bank forecasts the country will continue to push forward with its reform process regardless of the rising price of oil. Many of Saudi Arabia’s reforms are part of its Vision 2030 that aims to diversify the country’s economy away from its reliance on oil.

Brent oil reached a three-and-a-half year high on 19 April, hitting $74.74 a barrel.

“Reforms are likely to broadly proceed, even at these levels of oil prices, although spending may increase further above baseline expectations,” the note said.

The bank was also upbeat about Egypt’s economic prospects, noting that the country’s “macro stablization” is continuing and that its reform program, which includes cutting fuel subsidies and reforming the tax system, remains “intact”.

“Authorities are on track to achieve a small 0.2 percent of GDP primary surplus this fiscal year. The target is to bring the primary surplus to 2 percent of GDP next fiscal year, and maintain it there going forward,” it said.