KSA invests in its future

KAEC tops the list of ongoing projects by dollar value.

Rail
Away from education, a number of key infrastructure projects are also progressing. These include the US $6 billion Haramain high-speed rail linking the holy cities of Mecca and Medina. The first construction contract (US $1.8 billion) was awarded to the Al-Rahji alliance in March, and civil works are currently underway.

In February, the Council of Ministers announced it was looking to speed up construction of the 444 km line by forcing the state-owned Public Investment Fund (PIF) to provide funding, by supplying interest-free loans.

The project is geared towards providing an infrastructure capable of coping with the growing influx of religious tourists during the annual Hajj and Umrah pilgrimages. The high-speed line will enable trains to reach speeds of up to 300kph.

Story continues below

Advertisement

FEATURED COMMENT From the list of projects provided and the amount of budget allocated a great deal of talent and expertise are required,   1 Comments Read more comments »

The project also has a UK-presence with a joint venture of Foster & Partners and Buro Happold working on the design of four of the five stations on route: at King Abdullah Economic City (KAEC), Jeddah Central Station, Mecca and Medina. The railway will also connect Jeddah International airport.

Security
Equally significant, though more sensitive, is the security fence that is currently under construction, which is designed to circulate the kingdom and detect incursions along the kingdom’s border with Iraq, Jordan, Kuwait, Qatar, the UAE, Oman and Yemen, as well as the Gulf and Red Sea coasts.

In 2009, a joint venture of the local Al-Rashid Trading & Contracting Company and the European Aeronautic Defence & Space Company (EADS) won a SR3.4 billion contract to build a 900km security fence along Saudi Arabia’s northern border with Iraq. It formed part of a multi-billion dollar project by the Interior Ministry to protect its 6,500km border using radar-based technology.

The same consortium secured the follow-up SR2bn contract for the second phase in July 2009. Other bidders for the project were the local Al-Arab Contracting Company (ACC), El-Seif Engineering & Contracting with the US’ DRS Technologies, US’ Raytheon and local Madaf Trading & Contracting with France’s Thales.

Construction in Saudi Arabia is not solely focusing on education and infrastructure, however. Underway in Riyadh is King Abdullah Financial District (KAFD). One of the most prominent projects in the kingdom, the SR36 billion project is being developed Al-Rayadah Investments– the development arm of the Public Pensions Agency (PPA).

Featuring two 300-metre plus towers, the 1.6km² site in the Al-Khozama district of the city, the development aims to become the Middle East’s financial centre and forms a crucial part of the city’s regeneration plan.

It will be home to the Saudi stock exchange (Tadawul) and Saudi business institutions such as the Al-Rajhi Group, Public Investment Fund (PIF) and Capital Markets Authority (CMA), which regulates the stock markets.