King Abdullah Economic City partnership announced
Saudi companies form JV to fund projects at KAEC business development
Saudi Arabian companies Mounshaat Al Maarifa Al Akaria and Masharea Al Maarifa Al Akaria will enter into a partnership to develop various projects in the Knowledge Economic City, the listed investment vehicle for the construction of the King Abdullah Economic City.
Mounshaat Al Maarifa Al Akaria Co. will contribute $133,319,110 (SAR 500 million) fully paid capital and Masharea Al Maarifa Al Akaria Co $266m (SAR1 billion) fully paid capital, it has been announced to the Saudi stock exchange, Tadawul.
There will be no financial impact on the companies’ results, it was further added, as the two established groups have no operational activity at the moment.
Mega-project Knowledge Economic City (KAEC) has six components – a sea port, industrial valley, educational zone, central business district with commercial, mixed-use, retail outlets and a financial island, resorts and residential area.
Eventually home to some two million residents, the project is set to create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC.
The total cost of the city is around $86bn, with the master-planning and development of the 168 million m2 of the Red Sea, north Jeddah project the responsibility of Emaar, The Economic City - a Tadawul-listed company created from Dubai-based public joint stock company Emaar.