Saudi Arabia's largest private sector investment, $26.6 billion, was officially announced on December 20.

The 'King Abdullah Economic City' project, estimated at SR100 billion, was officially launched by The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz in the presence of Prince Sultan bin Abdulaziz, Saudi Crown Prince, Minister of Defence and Aviation and Inspector General, and General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister and several dignitaries.

Emaar Properties, the world's largest real estate company in terms of market capitalisation, is the master developer of this ambitious project, the biggest outside of its home market of the UAE.

Saudi Arabian General Investment Authority, or SAGIA, the apex body responsible for inward investments into the kingdom, is the prime facilitator for the development. The contractor for the first phase will be the Saudi Binladen Group, Issam Galadari, Head of Saudi Operations for Emaar Properties, told Khaleej Times.

The King Abdullah Economic City will be a multi-stage development with construction beginning December 20. The City will be a mixed-use development located north of the commercial hub of Jeddah to ensure easy access from the Holy Cities of Makkah and Madina. A massive 55 million square metres of greenfield land with a 35km shoreline close to the industrial city of Rabegh has been earmarked for the master development.

The city will have six distinct components — a modern world-class Seaport, Industrial District, Financial Island, Education Zone, Resorts and The Residential Area. Completion of the overall project will be done in stages with the first batch of businesses and residents moving into the City in a period of 24 to 36 months.

Headed by Emaar, a group of giant Saudi and UAE companies has been formed to facilitate investments for the project. The group includes companies such as: Aseer Company for Trade, Tourism, Industry, Agriculture, Real Estate and Construction, as well as Saudi Binladen Group.

Just before the official announcement of the project, a 30 per cent IPO of the company being formed was approved as a means to finance the project and provide an investment opportunity, Amjed E. Shacker, General Manager for Corporate Communications at SAGIA, told Khaleej Times.

( www.khaleejtimes.com)