Arabian Legend
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Saudi Arabia has led the way in developing pristine new cities devoted to specialized industries through a public/private endeavor. The government serves as regulator, facilitator and promoter while private industry provides capital, land ownership and development. The Saudi Arabian General Investment Authority (SAGIA),[1] established in April, 2000 as a vehicle for investment in Saudi Arabia and to sustain rapid economic growth, is consigned the role of attracting and processing foreign direct investment and is the cities key regulatory authority. Under the patronage of His Majesty King Abdullah, the Saudi government undertook the 10 x 10 program in 2006 to enact reforms and promote targeted investments in order to position Saudi Arabia among the worlds ten most favored investment destinations. (map courtesy SAGIA)
Under Development are:
King Abdullah Economic City (KAEC) in Rabigh
Prince Abdul Aziz Bin Mousaed Economic City (PABMEC) in Hael
Knowledge Economic City (KEC) in Madinah
Jazan Economic City (JEC) in Jazan
Planned are:
Tabuk Economic City (TEC)
Eastern Province Economic City (EPEC)
Except for King Abdullah Economic City, each of the cities has its own area specialization being developed around at least one globally competitive cluster or industry. They are also being developed according to environmental guidelines using state-of-the-art greenfield solutions. The aim is to create opportunities for the private sector by way of jobs and attractive life styles and to provide a business-friendly atmosphere. Each city will be developed by the private sector, promoting private investment opportunities in developing infrastructure, real estate and industry, Core jobs are expected to be created, which in turn will spur other supporting ancillary jobs.
King Abdullah Economic City (KAEC) is divided into six main components: industrial zone, sea port, residential areas, sea resort, educational zone and central business district (including the financial island).[2] Located along the Red Sea coast, it will have a total development area of 66.8 miles and represent an investment of $27 billion.
The industrial zone is expected to cover 11,000 acres and will consist of industrial and light manufacturing facilities (330,000 jobs for 2,700 industrial tenants); research and development (150,000 jobs); business and office space (200,000 jobs); services (115,000 jobs); hospitality (60,000 jobs) and education and community services (145,000 jobs). The seaport will be the largest in the region, covering 13.8 square kilometers. The residential areas are expected to include 260,000 apartments and 56,000 villas home for a half million residents and ten thousand tourists along with parks and green spaces and many public amenities. The sea resort will become a major tourist destination, accommodating tourists in 25,000 hotel rooms in 120 hotels with an 18-hole golf course, equestrian club, yacht club and a range of water sports. The educational zone is planned to consist of a multi-university campus flanked by two research and development parks. The central business district, offering office space, hotels and mixed commercial space, will also encompass financial island the financial nerve center for the worlds leading banks, investment firms and insurance companies.
Prince Abdul Aziz Bin Mousaed Economic City in Hael, covering 156 million square meters, is on the hub of transportation routes in the Middle East. Its focus will be on transportation, logistics, petrochemicals, agribusiness, minerals and construction materials. It will also feature a knowledge center. It is expected to have a population of 80,000 with 55,000 new jobs. The investment involved is expected to be $8 billion.[3]
Knowledge Economic City in Madinah, covering 4.8 million square meters, is near the holy mosque of the Prophet and focuses on knowledge-based industries with an Islamic theme and Islamic civilization studies as well as a park themed around the prophetic heritage. It will also house a complex of technological and administrative colleges as well as one for medical studies, biological sciences and health services. Besides being the home of a multi-modal transportation center and business district, it will contain a major retail establishment and hotel complex. It is expected to create 20,000 new jobs and attract a population of 200,000. Its expected cost is $7 billion.[4]
Jazan Economic City will be located in the Southwestern region of the country on the Red Sea and occupy 100 million square meters. Its focus will be on energy, agriculture and labor-intensive industries. Besides agriculture repackaging & distribution and power & water desalination plants, an industrial park will occupy two-thirds of the city. Fisheries will play a dominant role. It will also be a major business and cultural center and will be expected to provide 500,000 new jobs. It will represent a $27 million investment.[5]
In the April 2011 issue of The Metropolitan Corporate Counsel, Yusuf Giansiracusa of Jones Day stated: There are two general objectives in developing the economic cities; one is to spread opportunities throughout the Kingdom. Our land mass is four or five times the size of France, and the government wants to provide employment opportunities and economic development to areas of the Kingdom beyond the three major metropolitan areas. The other is to create islands of excellence where the Kingdom can attract foreign investment and create an environment that facilitates high-value ventures.[6]
Saudi Arabias Six New Economic Cities
