JEDDAH, 25 May 2007 — Emaar, The Economic City (Emaar.E.C), the Tadawul-listed Saudi company developing King Abdullah Economic City (KAEC), the single largest private sector-led development in the region, showcased the role of KAEC in fostering the growth of the Saudi Arabian economy at the recent Saudi International Real Estate Conference (SAIREC).
Held under the patronage of Crown Prince Sultan, the regent, SAIREC was inaugurated by the Minister of Trade and Industries Hashim Yamani and the Minister of Economy and Planning Khaled Al-Qusaibi. The event was organized by the Council of Saudi Chambers and National Real Estate Committee.
“KAEC is a pioneering model for urban developments that support the overall socio-economic progress of Saudi Arabia,” said Ahmed Linjawy, executive director, External Relations & Human Resources, Emaar.E.C. “As a project inspired by the vision of Custodian of the Two Holy Mosques King Abdullah bin Abdul Aziz, KAEC will power the growth of the Saudi economy by generating one million jobs, attracting local and foreign investment and has already gained strong investor response.”
The objective of SAIREC was to highlight the investment opportunities offered by the Saudi Arabian real estate sector, and project its impact on the Kingdom’s socio-economic growth. Experts participating at the event discussed the Saudi Arabian real estate sector vis-à-vis economic development, the challenges in jurisdiction and finance, the legislative and organizational environment and innovation and development mechanisms.
KAEC is spread over 168 million sqm and has six key components — the Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities. The Saudi Arabian General Investment Authority (SAGIA) is the prime facilitator of the project.
Work is on progress at KAEC with the Presentation Center and a 15-km access road already completed. Construction of the first phase including the Industries Zone, Sea Port, Resorts and Residential Communities has begun. KAEC, located on the Red Sea coast, offers easy access to the two Holy Cities of Makkah and Madina and is also close to Jeddah.
Emaar is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world’s largest property developers, and a number of high profile investors from Saudi Arabia. Emaar has a share capital of SR8.5 billion, consisting of 850 million shares with a nominal value of SR10 each. Shares worth SR2.55 billion were offered for public subscription.
KAEC mega-project works closely with the Kingdom’s ongoing drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry.
Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents.