King Abdullah Economic City contracts surpass $320m in 2018
Contracts awarded this year include development work for Industrial Valley on the Red Sea
Construction and development contracts awarded for King Abdullah Economic City (KAEC) in Saudi Arabia have surpassed $320m (SAR1.bn) this year.
KAEC's acting chief executive officer, Ahmed bin Ibrahim Linjawy, said contracts handed out for the megaproject, which is being developed by Emaar, The Economic City (Emaar EC), included packages to develop the Industrial Valley.
Industrial Valley at KAEC, which is located just an hour from Jeddah, Makkah, and Medina, has already attracted more than 110 local and international companies so far, Linjawy said in comments picked up by the Saudi Press Agency.
Industrial Valley is a mixed-use commercial and residential development situated along the Red Sea on the kingdom's west coast. It aims to attract international companies to set up offices in the community, which boasts good road, rail, air, and sea travel routes thanks to the King Abdullah Port, National Highway Network, and the Haramain High-Speed Rail network.
Alongside Industrial Valley, contracts have been awarded for work related to residential areas and facilities, in addition to the development of numerous other projects spanning tourism, entertainment, and sport.
Capacity at King Abdullah Port, which is located 120km from Jeddah and is a vital economic driver for KAEC, has reached 3.4 million containers per year, according to the Linjawy.
Meanwhile, the master developer of KAEC, Emaar EC, has seen its net profit for the first nine months of 2018 plunge 555.8% when compared to the same period in 2017.
The sharp drop means Emaar EC experienced a $52.2m (SAR196m) net profit loss after Zakat and tax for the nine months to 30 September, 2018. It blamed the loss on higher gross profit in the corresponding period, which it said was due to higher industrial land sales.