King Abdullah Economic City

King Abdullah Economic City

Overview
King Abdullah Economic City (KAEC, icon; ) is a megaproject announced in 2005 by Abdullah bin Abdulaziz Al Saud
Abdullah of Saudi Arabia
Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005...

, the king of Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

.

With a total development area of 173 km² (66.8 sq mi), the city is located along the coast of the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...

, around 100 km north of Jeddah
Jeddah
Jeddah, Jiddah, Jidda, or Jedda is a city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, the largest sea port on the Red Sea, and the second largest city in Saudi Arabia after the capital city, Riyadh. The...

, the commercial hub of the kingdom, the city will also be approximately an hour away from the holy Islamic cities of Mecca
Mecca
Mecca is a city in the Hijaz and the capital of Makkah province in Saudi Arabia. The city is located inland from Jeddah in a narrow valley at a height of above sea level...

 and Medina
Medina
Medina , or ; also transliterated as Madinah, or madinat al-nabi "the city of the prophet") is a city in the Hejaz region of western Saudi Arabia, and serves as the capital of the Al Madinah Province. It is the second holiest city in Islam, and the burial place of the Islamic Prophet Muhammad, and...

 by car and an hour away of all Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

ern capital cities by plane.
The total cost of the city is $86 billion (around SR 207 billion), with the project being built by Emaar, The Economic City.
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Encyclopedia
King Abdullah Economic City (KAEC, icon; ) is a megaproject announced in 2005 by Abdullah bin Abdulaziz Al Saud
Abdullah of Saudi Arabia
Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005...

, the king of Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

.

Overview


With a total development area of 173 km² (66.8 sq mi), the city is located along the coast of the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...

, around 100 km north of Jeddah
Jeddah
Jeddah, Jiddah, Jidda, or Jedda is a city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, the largest sea port on the Red Sea, and the second largest city in Saudi Arabia after the capital city, Riyadh. The...

, the commercial hub of the kingdom, the city will also be approximately an hour away from the holy Islamic cities of Mecca
Mecca
Mecca is a city in the Hijaz and the capital of Makkah province in Saudi Arabia. The city is located inland from Jeddah in a narrow valley at a height of above sea level...

 and Medina
Medina
Medina , or ; also transliterated as Madinah, or madinat al-nabi "the city of the prophet") is a city in the Hejaz region of western Saudi Arabia, and serves as the capital of the Al Madinah Province. It is the second holiest city in Islam, and the burial place of the Islamic Prophet Muhammad, and...

 by car and an hour away of all Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

ern capital cities by plane.
The total cost of the city is $86 billion (around SR 207 billion), with the project being built by Emaar, The Economic City. A Tadawul
Tadawul
Saudi Stock Exchange or Tadawul is the only stock exchange in Saudi Arabia. It is supervised by the Capital Market Authority. The Tadawul All-Share Index reached its highest point at 20,634.86 on 25 February 2006. It lists 144 publicly traded companies...

-listed company created from Emaar Properties
Emaar Properties
Emaar Properties , based in the United Arab Emirates, is a Public Joint Stock Company listed on the Dubai Financial Market. Established in 1997 with an initial paid-up capital of AED 1 bn, Emaar Properties is currently the Persian Gulf region's largest land and real estate developer...

, a Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

-based public joint stock company and one of the world’s largest real estate companies, and SAGIA (Saudi Arabian General Investment Authority) which is the main facilitator of the project.

The city, along with other five economic cities, is a part of an ambitious "10x10" program to place Saudi Arabia among the world’s top ten competitive investment destinations by the year 2010, planned by SAGIA. The first stage of the city is planned to be completed in 2010, while the whole city is going to be fully completed by 2020. The city will help diversify the oil-based economy of the kingdom
Economy of Saudi Arabia
Saudi Arabia has an oil-based economy with strong government control over major economic activities. Saudi Arabia possesses 18% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC, although its influence has waned in recent...

 by bringing direct foreign and domestic investments. The city also will help create up to one million jobs for the youthful population of the country, where 40% of the population are under 15.

City components



The city is divided into six main components: Industrial Zone, Sea Port, Residential Areas, Sea Resort, Educational Zone, and a Central Business District (CBD
Central business district
A central business district is the commercial and often geographic heart of a city. In North America this part of a city is commonly referred to as "downtown" or "city center"...

) which includes the Financial Island.

Industrial zone


The industrial zone is estimated to cover 63 km². The 4400 hectares (10,872.6 acre) of land will be dedicated to industrial and light manufacturing facilities—identified as key growth drivers for the Saudi economy—and can now host 2,700 industrial tenants. The jobs created estimated to be in industrial and light industries (330,000); research and development (150,000); business and office (200,000); services (115,000); hospitality (60,000) and education and community services (145,000). The "Plastics Valley" planned within the zone will use raw materials readily available in Saudi Arabia to produce high-end plastics used in automotive, biomedical, construction and food packaging industries.

Sea port


The seaport is estimated to cover 13.8 square kilometers, it will be the largest in the region with a capacity of over of containers per year. The port will have facilities to handle cargo and dry bulk, and will be equipped to receive the world’s largest vessels. Another key component of the Port will be a custom-built Hajj Terminal with a capacity to handle up to 300,000 pilgrims on their way to Mecca and Medina, the holy Muslim cities.

Residential areas


The residential area is planned to include 260,000 apartments and 56,000 villas. It will be divided into smaller residential, commercial, and recreational areas. Parks and green spaces will be used extensively throughout the residential area. The area is estimated to be home for around half a million residents, and another ten thousand tourists. Each district would feature its own public amenities, such as mosques, shops
Retailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

 and recreational venues.

Sea resort


The Resorts Area will be designed to feature services and amenities, hoping to draw both local and international tourists. Set to become a major destination on the map of Saudi Arabia and the map of the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 as a whole. It will include hotels, shopping centers and other recreational facilities. The number of hotel rooms and suites are proposed to be 25,000 hotel rooms in more than 120 hotels.
Among the tourist draws at the resort is an 18-hole golf course
Golf course
A golf course comprises a series of holes, each consisting of a teeing ground, fairway, rough and other hazards, and a green with a flagstick and cup, all designed for the game of golf. A standard round of golf consists of playing 18 holes, thus most golf courses have this number of holes...

, with training facilities and driving range. An equestrian club, yacht club and a range of water sports will also be constructed.

Educational zone


The Educational Zone is a part of plan to bring the Saudis capabilities and aspirations in technology to globally competitive levels. The Educational Zone is planned to consist of multi-university campus flanked by two Research & Development parks
Science park
A research park, science park, or science and technology park is an area with a collection of buildings dedicated to scientific research on a business footing. There are many approximate synonyms for "science park", including research park, technology park, technopolis and biomedical park...

. The multi-university campus is designed to accommodate 18,000 students, and a 7,500 faculty and staff members.

Central business district


The central business district (CBD) is planned to offer 3.8 km² of office space, hotels and mixed-use commercial space. The Financial Island, within the CBD, has now been doubled in area to cover 14 hectares (35 ac) of land, which will be the largest regional financial nerve center for the world’s leading banks, investment houses and insurance groups.

Kingdom Tower


The Kingdom Tower will be one mile high (1.6 km) and is designed by the architect Adrian Smith
Adrian Smith (architect)
Adrian D. Smith is an American architect who has designed skyscrapers including the Burj Khalifa, Jin Mao Tower and Trump International Hotel and Tower, as well as the proposed Kingdom Tower for Jeddah, Saudi Arabia.-Education:...

.

Developments


On June 12, 2008, King Abdullah
Abdullah of Saudi Arabia
Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005...

 visited the city and evaluated the progress. He also inaugurated projects and initiatives with a total worth of $35 billion (SR 130 billion). These projects include:
  • Science and Research Complex
  • Columbia University
  • Thunderbird University
  • Environment Protection Centre
  • Ethraa, The Smart City
  • Health Care City
  • KAEC Media City
  • The Cadre Technical City
  • EMAL International Aluminum Smelter factory
  • Total Oil factory
  • Holiday Inn Express
    Holiday Inn Express
    Holiday Inn Express is a mid-priced hotel chain within the InterContinental Hotels Group family of brands. As an "express" hotel, their focus is on offering limited services and a reasonable price. Standard amenities lean toward the convenient and practical which cater to business travelers and...

     Hotel
  • Ritz-Carlton
    Ritz-Carlton
    The Ritz-Carlton is a brand of luxury hotels and resorts with 75 properties located in major cities and resorts in 24 countries worldwide...

     Hotel & Resort

The king also inaugurated the King Abdullah University of Science and Technology
King Abdullah University of Science and Technology
King Abdullah University of Science and Technology is a public research university located in Thuwal, Saudi Arabia.KAUST was founded in 2009 and focuses exclusively on graduate education and research, using English as the official language of instruction...

 (KAUST). The university is 20 km away south of the city in the village of Thuwal
Thuwal
Thuwal is a village belonging to the governorate of Jeddah in the Makkah Province of Saudi Arabia 80 kilometers north of Jeddah on the coast of the Red Sea...

. It opened in September 2009.

Emaar, E.C.
Emaar Properties
Emaar Properties , based in the United Arab Emirates, is a Public Joint Stock Company listed on the Dubai Financial Market. Established in 1997 with an initial paid-up capital of AED 1 bn, Emaar Properties is currently the Persian Gulf region's largest land and real estate developer...

 and SAGIA have also signed several memorandums of understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...

 (MoU) and contracts with international and local developers in many fields. These developers include:
  • Orange Business Services, is trusted advisor to the project and will oversee the design of the Smart City telecoms services.
  • Ericsson
    Ericsson
    Ericsson , one of Sweden's largest companies, is a provider of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks...

    , to supply, build, integrate operate and manage multiplay end-to-end fixed broadband network.
  • Cisco Systems
    Cisco Systems
    Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...

    , to design infrastructure for IT
    Information technology
    Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

     networks in the city.

  • GEMS
    Sunny Varkey
    Sunny Varkey began the Varkey Group in 1980 with 'Our Own English High School'. Since 1980, the organisation has since evolved to include a number of schools internationally...

     World Academy, to design, build, and operate the first school in the city which will be opened by September 2009.
  • StrateSphere Enterprises and PolymerOhio, to develop KAEC Plastics Valley.
  • CEMCCO, to develop infrastructure for the Industrial Zone.
  • DP World, to develop KAEC Sea Port to be the largest in the Red Sea and one of the top 10 largest ports in the world with a capacity to handle 20 million TEU
    Twenty-foot equivalent unit
    The twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...

     (twenty foot equivalent container units).
  • Mars GCC, to establish its own manufacturing facility in the Industrial Zone.
  • Capri Capital Partners, to develop a mixed-use project with a total worth of $2 billion (SR 7.5 billion).
  • Freyssinet Saudi Arabia, to develop the Business Park at Bay La Sun Village.
  • Bin Ladin Group, to construct 16 residential towers within Bay La Sun Village. The towers are scheduled for completion in September 2009.
  • Siemens
    Siemens
    Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...

    , to undertake the electrical transmission and distribution (T&D) works for the first phase of KAEC. The work is scheduled to be completed by 2010.



Emaar, E.C has also launched two residential areas, Bay La Sun Village, and Esmeralda Suburb which includes a golf community. Both of the areas received an overwhelming response from investors. Bay La Sun is in itself a fully integrated community that includes several new initiatives including:
  • Raffles International School.
  • Bay La Sun Business Park.
  • Bay La Sun Hotel and Mall, which were also inaugurated by the king when he visited the city.

Transport


KAEC will be served by a railway station
Railway stations in Saudi Arabia
List of Railway stations in Saudi Arabia:- Maps :* * - Existing :* * Riyadh - national capital* Hofuf - junction* Haradh* Dammam - Persian Gulf port* Jubail - Persian Gulf port and industry- Under Construction or Proposed :...

on the national high speed network.

External links