JEDDAH, 11 June 2008 — Custodian of the Two Holy Mosques King Abdullah will lay the foundation stone today for a number of educational, IT, electricity, real estate and infrastructure projects worth SR130 billion ($34.6 billion) at King Abdullah Economic City (KAEC) in Rabigh.
In a statement on the occasion, Amr Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA), commended King Abdullah’s efforts to improve the Kingdom’s investment climate. “The king’s visit to the economic city is a big boost to the private sector,” he added.
Spread over 168 million square meters, the KAEC has six key components: Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities. UAE real estate giant Emaar is developing the city.
“During his inspection tour of the city on Wednesday, King Abdullah will launch a number of important projects including the port, the main communication network and a company for financing electricity, water and sewage projects,” Al-Dabbagh said.
King Abdullah will also open a number of strategic projects being carried out by international companies in the Industrial Zone, including knowledge industries, a smart city, a health care city and a technological center of King Abdulaziz City for Science and Technology.
Other projects to be launched at KAEC today are: international hotels, a manpower-training city and an environment protection center, a biological complex and a number of knowledge-based industries.
“King Abdullah has instructed that all projects to be implemented in the city should not have any negative effect on environment,” Al-Dabbagh said.
King Abdullah launched the Rabigh economic city project about two-and-a-half years ago. Similar economic cities were later launched by the king in Hail, Madinah and Jizan. These cities are expected to draw more than SR300 billion in investment and create more than 1.5 million jobs.
Since King Abdullah ascended the throne in August 2005, several mega projects have been launched in various parts of the Kingdom. They include King Abdullah University of Science and Technology in Thuwal, outside Jeddah. During a tour of the Eastern Province last month, the king launched 29 projects at Jubail Industrial City that would require a total capital investment of SR68 billion.
Works at KAEC are in progress. The first residential community, Bay La Sun Village, at the city has received an overwhelming investor response and sold all houses in the first phase of planned residential areas.
The village will include residential towers, schools, a central shopping center, mosques, banks and gas stations, clinics and office buildings.
The name Bay La Sun is derived from the name of a tree that is regarded as a source of inspiration for many Islamic and Western scholars.
The KAEC, together with SAGIA as the prime facilitator, is an embodiment of Saudi Arabia’s drive for economic diversification and expansion. It is expected to usher a new era for Saudi Arabia by encouraging and priming diverse industries, creating employment opportunities for Saudis and providing a unique living environment.
“As a project inspired by the vision of King Abdullah, KAEC will power the growth of the Saudi economy by generating one million jobs and attracting local and foreign investment,” said a senior official at Emaar E.C., a Saudi joint stock company managed by Emaar Properties and a number of investors from Saudi Arabia.
