JEDDAH, 3 October 2006 — A SR30 billion project to build an economic city will shortly be launched in the Hail region in northern Saudi Arabia. The representatives of the Prince Abdul Aziz ibn Musaed Economic City and the Saudi Oger signed a contract for the development of the economic city in Jeddah on Saturday.
Abdullah Al-Rakhis, chairman of the Rakisa Holding and the main developer of the economic city, said that Deputy Governor of Hail Prince Abdul Aziz ibn Saad, the deputy chairman of the Higher Commission for the Development of Hail, Governor of the Saudi Arabian Investment Authority Amr Dabbagh and Deputy Chairman of the Board of Directors of the Saudi Oger Ayman Al-Hariri attended the function.
The Saudi Oger will develop, as per the agreement, the first phase of the economic city at a cost of SR500 million. The project will canvass foreign investments by opening 11 offices abroad. Shares worth SR5 billion will be floated in the stock markets before the end of the year.
Deputy Governor Prince Abdul Aziz said, “The Hail region, particularly the project of the economic city, is characterized by plenty of features to attract foreign investors. The higher commission of the region’s development will support all the investment initiatives including the efforts to attract investors to the region.”
The prince also underscored the importance of Hail’s geographical location with its proximity and easy access to various Middle Eastern markets that potentially contain 300 million consumers.
Amr Dabbagh said, “The launching of specialized economic cities is a method to develop various regions the Kingdom. The city, which is set up after detailed viability studies, provides the environment for attracting investments from within and outside the Kingdom.”
Dabbagh added that the SAGIA has set up a special agency for the supervision and coordination of economic cities.
The first phase of the project included the infrastructure development including the residential buildings, shopping and amusement facilities, a five-star hotel and a large mosque. The first phase will also focus on developing the transportation infrastructure, new educational institutions including universities and institutes of higher learning besides agricultural projects and industries with special attention to mining and metallurgy, Abdullah Al-Rakhis said.
Ayman Al-Hariri added that as his company has already executed several large developmental projects in the Kingdom, it has the know-how and experience to undertake the task. The first stage of this scheme will take 10 years to complete, he added.