Emaar E.C. is creating a city that will consist of six zones seamlessly blended into one fully integrated entity.

EMAAR: smart city developers
Experience and reputation back Emaar E.C., the premier developers charged with creating the nation’s largest economic city

Saudi Arabia has never been a better place in which to invest. This, in brief, is the message being sent out by the government via the Saudi Arabian General Investment Authority (SAGIA), not just in words but also in actions. All the stops have been pulled out to make investing in the Kingdom a trouble-free experience for foreign companies; new economic and industrial sectors have been opened up to international participation; and a previously unparalleled range of opportunities are being created by the development of the country’s new economic cities.

Of these, the first and largest is King Abdullah Economic City (KAEC), located on the Red Sea near Jeddah and between the holy cities of Makkah and Madinah. Royal approval for commencement was given in December 2005 and the project is already well into the first phase development plan, which includes the building of the main roads and infrastructure network.

The statistics for KAEC are impressive: it is the single largest private sector investment project in the Kingdom, as well as the biggest construction project in the Middle East. Covering a landmass of 65 square miles, the projected cost over the next 10 to 15 years is estimated at around SAR100 billion (£13.2 billion); it will house two million people and create one million jobs. Saudi Arabia’s youthful – and growing – population means that the creation of employment is a priority.

A project of this calibre and scope requires the best input from the outset. This is why Dubai-based Emaar Properties, one of the major real estate developers in the Gulf region and the winner of several development awards, has been chosen as the main developer. Emaar, The Economic City (Emaar E.C.), a Tadawul-listed Saudi company, has been created specifically to manage and develop the entire project.

“What SAGIA wanted to do with this project is allow the maximum involvement possible from developers and stakeholders. Emaar has a lot of experience, a good reputation and they want to expand in Saudi Arabia,” says Ahmed Linjawy, Executive Director, City Management, at Emaar E.C.

AHMED LINJAWY Executive Director, City Management, Emaar E.C.

The city will consist of six zones: an industrial park, a port, a business district comprising the Kingdom’s world-class financial area, an educational zone with a range of training and academic institutions, a resort district with hotels and recreational facilities, and a residential area of more than 170,000 houses and apartments.

One of the main challenges, explains Mr Linjawy, is to create the city with these distinct areas as one seamlessly operating entity. Looking at other cities of this type in Dubai, Singapore and Malaysia has allowed Emaar to benefit from lessons learned: underestimating potential population figures, for example, can lead to eventual traffic and environment problems.

KAEC will be a smart city, ensuring from the start that the residential and business aspects work together efficiently to get the maximum out of available technologies. Security is also being dealt with using the very latest technological advances.

The visible aspects of phase one will be works commencing on the industrial zone and port, a residential waterfront village, and the creation of 10,000 jobs. Less obvious but just as necessary are negotiations with potential operators, studies into the specific clusters to be included in the industrial zone (which will in turn influence the research and educational areas that will be needed) and ongoing work with SAGIA on regulatory changes required for the project.

Eager investors for the city are by no means lacking, but a solid marketing and sales programme remains vital to the project. Emaar is working closely with SAGIA on an advertising campaign and on the preparation of road shows that will target specific investors at home and abroad to maintain the flows, while on-site a large presentation centre provides information for investors and visitors alike.

King Abdullah Economic City

One of the largest construction projects in the world, KAEC will have: