JEDDAH, 10 October 2006 — An international airport will be established as part of the King Abdullah Economic City (KAEC) in Rabigh, about 200 km north of Jeddah, according to Mohamed Ali Alabbar, chairman of Emaar Economic City Company. “The new airport will serve the economic city and nearby areas,” Alabbar said, adding that it would facilitate transport of passengers and cargo to and from KAEC, which is expected to attract investment projects worth more than SR200 billion.
The airport project will figure prominently at the first meeting of the company’s board of directors today. The board will also discuss other expansion projects since Custodian of the Two Holy Mosques King Abdullah has agreed to increase the city’s area from 55 to 168 million square meters. Economic analysts said the decision to increase KAEC’s area by three times would double the investments. As a result, the company is likely to hike its capital from SR8.5 billion to SR16 billion.
Abdullatif Basheikh, professor of accounting at King Abdul Aziz University in Jeddah, said that after the expansion of its area, the city would attract investment projects worth SR200 billion, instead of SR100 billion as previously estimated. Ali Al-Hazmi, another analyst, said the expansion of KAEC’s area would have far-reaching impact as it would increase its assets and create room for more vital projects.
KAEC will have six distinct components — a modern world-class seaport, an industrial district, a financial island, an education zone, resorts and residential area. Completion of the overall project will be in stages with the first batch of businesses and residents moving into the city within 36 months.
Emaar Properties, the world’s largest real estate company in terms of market capitalization, is the master developer of this ambitious project. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for the development.
