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infrastructure: new developments saudi arabia 2012


From new hotels, malls, communities and cityscapes to upgrading transport links and airports, the Kingdom's infrastructure is undergoing a truly major transformation


TRANSFORMATION NATION


A cornerstone in the development of the Saudi Arabian economy is the improve- ment of its infrastructure at every level to accommodate the economic and social changes that the country is experienc- ing, especially given recent and pro- jected future increases in population. During 2009 and 2010, the country began the construction of seven new industrial cities, adding to the 15 already established after 1973, with a clear focus on developing the country's industrial infrastructure. In 2011, contracts were signed for the develop- ment of an eighth industrial city at Shaqraa. Commercial and residential projects have also moved ahead making Saudi Arabia the largest real-estate market in the Gulf Cooperation Council (GCC). The country is, at the same time, actively seeking to upgrade and improve its rail, port, airport and related transportation infrastructure. With the Saudi economy boosted by a US$130 billion spending package announced by King Abdullah during 2011 Ð even though the allocation of the spend was heavily weighted towards job creation, housing and education Ð this huge injection into the economy is drawing in more multinationals seeking new contracts to compensate for slower markets elsewhere in the world. Couple that with the mixed-use devel- opment model, which promises to lead to increased domestic and multinational investment, plus the implementation of the Freehold Property Law and the arrival of a mortgage law, the Kingdom's real-estate market is set to intensify. Non-Saudis living in the country will be able to buy and own their own homes, following the approval of legis- lation passed in February 2011 by the Shoura Council and when finally given the go-ahead by the Saudi Cabinet. The market could then open up to all residents holding current work visas. While non-residents are currently not allowed to buy into the economy, observers expect this ruling will eventually change.


PROJECTING GROWTH Some of the most audacious projects under


development are the Al-Khobar Lakes and Jeddah Gate projects. The first is a lake- front gated residential community, set amid 80,000 square metres of water features, due for completion in 2014. The second is a US$700 million investment to build 5,000 homes on the 464,515-square-metre old Jeddah airport site, with the hando- ver of its first phase due early this year. Dubai's Damac Properties is building Al Jawharah, a 40-storey tower-block develop- ment on Jeddah's Corniche. Damac expects the project to be completed later this year. Limitless is behind the US$12 billion Al Wasl community near Riyadh. Once finished, the 1,400-hectare community will have over 50,000 homes, eight shopping complexes, several five-star hotels with conference facilities, schools, mosques, sports facilities, civic buildings, public centres and commer- cial offices. It will also feature 300 hectares of landscaped greenery and parks and an environmentally friendly transport system. Arguably most ambitious of all is Kingdom Holding's plan to build the world's tallest


tower in Jeddah. The tower, expected to be at least one kilometre high, will be the first phase of the US$26.7 billion Kingdom City project in Jeddah, one of the largest and most comprehensive real-estate projects in the region. Located on a prime site in Obhur, north of the creek of Jeddah and with the mountains to the east, the Kingdom City master plan covers 23 million square metres and includes residential, entertain- ment, retail and hospitality units. Kingdom City is expected to house 80,000 residents and accommodate 250,000 visitors and will be completed in various carefully planned phases over the next ten years or so. Another major city development is the Knowledge Economic City (KEC) in Al Madinah, which will cost US$7 bil- lion to complete. Established by the King Abdullah Foundation, the KEC is being positioned as a landmark and national icon for knowledge-based industrial develop- ment in the country. The development has been granted special economic-zone status by the Saudi Arabian General Invest- ment Authority (SAGIA) to ensure it is best placed to attract foreign investment.


The King Abdullah Financial District, Riyadh: the Middle East's first large-scale financial hub


KING ABDULLAH FINANCIAL DISTRICT


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