Massive ‘city within a city’ backed by Saudi Arabia’s PIF planned for Riyadh

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The project will be located in the northern growth corridor of Riyadh, 15 minutes away from the international airport. The designs include a 600,000 square meters park with some 200,000 trees. (Shutterstock)
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The project will be located in the northern growth corridor of Riyadh, 15 minutes away from the international airport. (Reuters)
Updated 07 August 2018
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Massive ‘city within a city’ backed by Saudi Arabia’s PIF planned for Riyadh

  • Al Widyan will cover 7 million square meters
  • Located in key growth corridor in north of capital

LONDON: A new “city within a city” is being planned in Riyadh, backed by the Saudi Arabian sovereign investor, the Public Investment Fund (PIF).

The development — called Al Widyan — will comprise residential, commercial, retail and leisure facilities on a 7 million square meter site to the north of the capital, and will take seven years to complete. Initial work has already begun.

Al Akaria Saudi Real Estate Company (SRECO), a Tadawul-listed developer 65 per cent owned by PIF, announced the development, with a price tag of SR10 billion ($2.66 billion) for the first phase.

The project will be the first in the Kingdom outside an economic development zone to be granted the status of “self regulatory office,” an initiative aimed at simplifying and speeding planning approvals and reducing building bureaucracy.

Abdulrahman Almofadhi, chairman of SRECO, said: “Al Widyan will be a new paradigm for community living in the Kingdom and will embody the spirit of the new Saudi Arabia, the power of human talent to conceptualise and develop the future that we aspire to for our children, communities and nation.”

Al Widyan — which means “valleys” in Arabic - will be a self-sustaining community, Almofadhi told Arab News, with a strong emphasis on health care, wellness, education and lifestyle.

“It will be a city on its own, with an eye on the lifestyle of its inhabitants. We have designed into it huge swathes of land as open areas, including 200,000 trees and a 600,000 square meter ‘central park,” he said.

“It will be the first of its kind, designed by American and British partners, according to international standards, and also designed to be a catalyst for future development. It is also manifesting a lot of the principles of the Vision 2030 strategy, and we are playing our part in diligently working towards that. It is important the quality of life of citizens is improved,” he added.

The initial phase of the project will be part funded by a SR1.5 billion loan from PIF, and Almofadhi said the final cost will be decided by the market. But he held out the prospect that Al Widyan, currently a subsidiary of SRECO, might eventually be floated on the Saudi Stock exchange.

“We are now working towards establishing a fund through which investors can join with us. Al Widyan is going to be a big company down the road and we are open to welcoming public and private investors,” he said.

There are no plans for PIF to sell down some of its stake in SRECO, he insisted. “We do not expect that to happen. One of the main goals of PIF is to use real estate as an agent of change in Saudi Arabia. There is a need for better housing in the Kingdom and PIF is paying great attention to that,” he said.

He thanked the Riyadh municipal government for granting Al Widyan special status.

“I am excited by the prospect of becoming the first private self-regulated development. It is the only private project in the Kingdom to have this, and I believe it will allow us to de-risk the development and reduce its complexity. It will enable us to put it on the fast track,” he said.

A statement from SRECO said the site is in the northern growth corridor of Riyadh, 15 minutes away from the international airport and 20 minutes away from downtown. Its prime location puts it within reach of a population of over 8 million people.

Further details of the project, including impressions of exactly how it will look, will be revealed in October. 


US intelligence says Huawei funded by Chinese state security: report

Updated 20 April 2019
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US intelligence says Huawei funded by Chinese state security: report

  • The accusation comes at a time of trade tensions between Washington and Beijing
  • Huawei dismissed the allegations

US intelligence has accused Huawei Technologies of being funded by Chinese state security, The Times said on Saturday, adding to the list of allegations faced by the Chinese technology company in the West.
The CIA accused Huawei of receiving funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, the British newspaper reported, citing a source.
Earlier this year, US intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, according to the report.
Huawei dismissed the allegations in a statement cited by the newspaper.
“Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources,” a Huawei representative told The Times.
The company, the CIA and Chinese state security agencies did not respond immediately to requests for comment.
The accusation comes at a time of trade tensions between Washington and Beijing and amid concerns in the United States that Huawei’s equipment could be used for espionage. The company has said the concerns are unfounded.
Authorities in the United States are probing Huawei for alleged sanctions violations.
Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of US sanctions against Iran.
She denies wrongdoing and her father has previously said the arrest was “politically motivated.”
Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding.
Another Chinese technology company, ZTE Corp. , has also been at the center of similar controversies in the United States.
US sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping US-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties.
Reuters reported earlier this week that the United States will push its allies at a meeting in Prague next month to adopt shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunications networks.