Top five mixed-use developments in Saudi Arabia

Elsa Baxter , May 13th, 2009

Saudi Arabia has an ambitious plan to place itself among the world’s top ten competitive investment destinations by next year.

The programme, devised by the Saudi Arabian General Investment Authority (Sagia), includes the development of a number of mega projects, including four economic cities.

These cities will “create a pro-business environment and a knowledge-based society while putting Saudi Arabia forth as a favorable investment destination in the region and throughout world.”

We take a look at the Kingdom’s five most impressive mixed-use developments, starting with the Sagia’s “crown jewel”, the King Abdullah Economic City.

1. King Abdullah Economic City (KAEC)

Client: Emaar Properties

Estimated value: US $50 billion

Schedule: Construction started in 2006.The first phase of the project is expected to be completed by the end of 2009. The overall project will be completed in stages.

Scope: KAEC is a massive development located in Rabigh. The master plan shows the city will be divided into four areas: the Industrial Zone, the Residential Zone, the Sea Resort and the Sea Port.

The Industrial Zone covers an area of 63 million m2 and will include facilities to operate and build plants and factories.

The Residential Zone covers an area of 51 million m2 and will include low, mid- and high-rise structures.

The Sea Resort provides a built-up area exceeding 3.5 million m2 for hotels, residential apartments, golf resorts, spas and water sports facilities.

The Sea Port provides 14 million m2 to build a world-class port on Saudi Arabia’s west coast. The port will include 30 berths to serve global trade routes between Asia, Europe and Africa.

2. Sudair City Development

Client: Saudi Industrial Property Authority (Modon)

Estimated value: US $40 billion

Schedule: Modon, Saudi Arabia’s industrial development agency, has short-listed 10 developers for Sudair City. The winning bidder will be responsible for hiring sub-contractors for the project.

Scope: Sudair City is a mixed-use development that includes residential, commercial, entertainment and educational facilities. Sudair City will span an area of 258 million m2 north of Riyadh. 

3. Prince Abdulaziz bin Mousaed Economic City

Client: Rakiza Holding Company; Al-Mal Investment Company

Estimated value: US $8 billion

Schedule: Work in scheduled to begin in 2010 and will be completed in phases finishing in 2022.

Scope: The city in Hail will cover 156 million m2 and will have 12 distinct components for trade and services in sectors such as agriculture and food processing, mining, education, housing, and entertainment. Its developers aim to use its strategic location to build transportation infrastructure consisting of an international airport, a dry port, a supply chain centre and a multi-modal passenger station.

4. Knowledge Economic City (KEC)

Client: Knowledge Economic City Developers

Estimated value: US $8 billion

Schedule: Knowledge Economic City Developers is in negotiation with consultants for the project. Construction is expected to begin by the second quarter of 2009. Knowledge Economic City will be built in phases. The project is expected to take ten years.

Scope: This project’s land area is around 5 million m2 and the total built up area is 9 million m2. The city is designed to help establish a catalyst for knowledge-based industries in Madinah and the developer claims it will generate 20,000 new job opportunities.

5. Jizan Economic City (JEC)

Client: MMC Group; Saudi Binladin Group

Estimated value: US $3 billion

Schedule: Construction of the city is imminent and will be completed in phases until the end of 2020. Phase one will take an estimated 30 months to complete. In November 2007, Aluminum Corporation of China (Chalco) signed an agreement with Malaysia’s MMC Corporation and the local Saudi Binladen Group to develop a one million tonne-a-year aluminum smelter in the city.

Scope: Jizan Economic City is located 725km south of Jeddah by the Red Sea. The city comprises residential, commercial and industrial zones.