RIYADH, 19 June 2006 — The United Arab Emirates (UAE) has overtaken Japan as the dominant foreign investor in the Kingdom following the award of an SR100 billion project to Emaar Properties of Dubai last year, the Saudi Arabian General Investment Authority (SAGIA) has announced.
The UAE investment approved by SAGIA stood at SR122.9 billion by the end of May, accounting for nearly 41 percent of the total FDI pumped into the Kingdom since its launch in April 2000, according to SAGIA.
It said the agreement signed by Emaar Properties with SAGIA to build the King Abdullah Economic City in Rabigh (Western Province) at a cost of nearly SR100 billion sharply boosted FDI in Saudi Arabia and supported SAGIA’s campaign to further attract foreign capital. Other projects followed in its wake, pushing up the UAE’s planned investment in the Kingdom. It said the figure was set to rise again as more ventures were being planned, SAGIA said.
Statistics show that SAGIA, which was set up with the aim of encouraging foreign capital as part of an economic diversification program, has licensed 3,608 projects with a total value of SR292.657 billion. Ten major countries investing in Saudi Arabia include the UAE, Japan, British Virgin Islands, Bahrain, France, Germany, Lebanon, Cayman Island, Canada and Bermuda.
A breakdown showed the services sector received the lion’s share of the FDI in the Kingdom, with a total investment of around SR150 billion. It was followed by industry, which received SR141.3 billion in terms of FDI. The rest of the capital covered agriculture and other sectors.
In another development, Emaar Middle East (EME), a joint venture between UAE-based Emaar Properties and Saudi-based real estate company Al Oula Development, have launched an SR42 billion ($11.2 billion) project for the development of Jeddah Hills community located in Jeddah city.
The development marks the second major foray into Saudi Arabia for Emaar Properties, with the massive 2,286 hectare Jeddah Hills project, following the announcement of the $26.6 billion King Abdullah Economic City in December last year.
Nearly 20,000 residential units — a combination of townhouses and single homes — will be on offer, alongside commercial and retail facilities.
Homes ranging from 500 sq. m. to 1,500 sq. m. will be built under the program and will consist of larger, scenic, home lots not commonly available in Jeddah. Residential units will go on sale from the first quarter of 2007. "Jeddah Hills is truly a unique project. It shows us how development can take place in a manner which is harmonious with nature and yet offers a luxury living environment,” said Mohamed Ali Alabbar, Emaar’s CEO after the signing ceremony.
Set between 70 and 90 meters on a hilltop, Jeddah Hills offers spectacular views over the surrounding landscape toward the Red Sea, North Jeddah and the mountains in the east, Alabbar observed.