BNC report lists top Saudi development projects

New Jeddah Downtown — Phase 1
Updated 09 February 2018
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BNC report lists top Saudi development projects

A significant number of expansion and redevelopment projects are among the 10 highest value construction projects in Saudi Arabia, according to the latest “Top Projects in Saudi Arabia” report prepared by the BNC Network for The Big 5 Saudi. The multi-development expansion of Makkah’s Grand Mosque and the redevelopment of Jeddah’s downtown are included in the list.
The BNC report revealed that the expansion and redevelopment of existing structures and areas is a main theme.

1. Al-Faisaliya City
The $25 billion Al-Faisaliya City concept for the western coast of Makkah stands at the top of the BNC list in value. The development will spread across an area of 2,450 square kilometers and will provide 995,000 housing units to accommodate 6.5 million people.

2. Grand Mosque
With an estimated completion date of mid-2018, the $21.3 billion expansion project will be divided into three phases. The expansion will include the addition of a new seven-story building with 74 prayer halls, an ornate prayer hall spread over 250,000 square meters and a 5,000-square-meter central ceremonial area.

3. Dahiyat Al-Fursan
Valued at $20 billion and due for completion by 2020, the residential project involves the construction of 100,000 houses and infrastructure works.

4. Al-Ruwaid redevelopment
The Jeddah-based project is expected to be completed by 2030. It involves the redevelopment of Al-Ruwais district and transforming a slum area into an urban district.

5. King Abdullah Security Compounds — Phase 5
Phase 5 of the King Abdullah Security Compounds under development by the Ministry of Interior is valued at $8 billion and is expected to be completed this year. The entire project will involve the construction of 369 security compounds.

The other projects in the list include: Al-Shamiya and Mataf expansion, Mall of Saudi, New Jeddah Downtown — Phase 1, The Avenues — Al-Malqa, and Riyadh Medical Village.
Event Director for The Big 5 Saudi, Roni El-Haddad, said: “The call made by Saudi Vision 2030 to diversify KSA’s economy is driving construction activity across all markets; government plans to strengthen religious tourism anticipate an influx of pilgrims to the Grand Mosque and Mataf instigating its expansion, additionally there is increasing demand by young people for higher quality urban areas, the development of which currently makes up 70 percent of all construction activities in Saudi Arabia.”


ALJ to drive foreign investment in auto sector

Updated 16 August 2018
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ALJ to drive foreign investment in auto sector

Abdul Latif Jameel (ALJ) and Japanese company Kosei Aluminium (Kosei) have signed a memorandum of understanding (MoU) with the National Industrial Clusters Development Program (NICDP), driving foreign investment into Saudi Arabia’s auto manufacturing sector.

The MoU seeks to explore the manufacturing of automotive aluminum wheels and components in Saudi Arabia and is the first major Saudi Arabian-based automotive components manufacturing venture intended to produce export products for worldwide markets.

Long-term plans for the venture involve the establishment of a factory in Saudi Arabia, as a global hub for Kosei, contributed by Saudi Arabian Mining Company (MA’ADEN). The volume of wheels produced is expected to represent a significant market share in the world.

The MoU, signed by NICDP Vice President Abdullah Al-Hazani, on behalf of NICDP President Homood Al-Tuwaijiri, Kosei CEO and President Shunkichi Kamiya, and Abdul Latif Jameel Vice Chairman and Deputy President Hassan Jameel will see Abdul Latif Jameel, Kosei and NICDP undertake a study into the technical and financial feasibility of manufacturing automotive aluminum die casting wheels and components in Saudi Arabia. This would contribute to the development of the manufacturing industry in the country — a key priority of Saudi Vision 2030.

Kamiya said: “It is our pleasure to sign this MoU with NICDP and Abdul Latif Jameel, to discover the enormous potential and various opportunities in the Kingdom as well as the MENA region. I am pleased to state that, the timing of Kosei’s global vision 2021 and Saudi Arabia’s Vision 2030 are so apt that, it has brought the three parties together to conduct the feasibility study and work toward achieving the goals.”

Al-Hazani said: “We are glad to have this MoU signed with Kosei Aluminum, one of the prominent global automotive suppliers in Japan, and Abdul Latif Jameel, one of the biggest automotive business expertise established in Saudi Arabia.”

 Signing this MoU is a part of NICDP’s plans and activities to develop a globally competitive automotive industry, together with growing a strong automotive parts supply base, in Saudi Arabia, which is in line with Vision 2030 to diversify economy in non-oil sector in the kingdom.”

Jameel said: “This MoU explores the exciting potential to bring manufacturing skills and jobs to Saudi Arabia and marks the first Saudi Arabian venture in large-scale automotive components manufacturing for export. The agreement is an important step in NICDP’s efforts to develop the manufacturing industry in Saudi Arabia in accordance with Saudi Vision 2030, and strives to make a valuable contribution to the Saudi automotive cluster.” 

The signing comes ahead of the expected visit to Saudi Arabia by Japanese Prime Minister, Shinzō Abe, and follows a visit by King Salman in March 2017, during which Saudi Arabia and Japan agreed to deepen existing bilateral relations between the two countries and establish a solid strategic partnership, as part of the Saudi-Japan Vision 2030.