Saudi Arabia has unveiled grand plans to develop two multi-billion-dollar cities recently in an aggressive bid to repatriate capital and attract value-added foreign investments and also with the aim of re-establishing its clout as a regional economic powerhouse.
The plans include the development of the Prince AbdulAziz bin Mousaed Economic City in Hail, which is set to become the largest transportation and logistics hub in the Middle East, and the development of a multi-billion-dollar Knowledge Economic City in Madinah.
The Economic City in Hail is likely to see a total private sector investment of SR30 billion ($8 billion) over the next 10 years, according to the project’s officials.
The second in a series of five new economic cities in Saudi Arabia being planned by the Saudi Arabian General Investment Authority (Sagia) – the first being the King Abdullah Economic City announced last December – the Prince AbdulAziz bin Mousaed Economic City, is a key element in Saudi Arabia’s recent initiative to further develop its economy, generate regional growth, and create employment opportunities for its youthful population.
The project at Hail will exploit the region’s core strengths of location, agriculture, mineral deposits, moderate climate and wild beauty.
Introducing the project, Abdullah Ibrahim Al Rakhis, chairman of Rakisa Holdings, said: “Rakisa is honoured to be developing this economically significant project in cooperation with a prestigious group of core investors – local, regional and international. Hail is one of the kingdom’s most attractive regions in terms of economic growth potential and investment opportunities.
“The region offers a strategic location, moderate climate, well-established agricultural sector, and the potential of large mineral resources waiting to be exploited.”
Covering an area of over 150 million sq m, the Prince AbdulAziz bin Mousaed Economic City will incorporate a cluster-based development comprising: transportation, logistics and supply chain centres; educational services; agricultural and food processing services; mining and commerce services; housing; and infrastructure.
The city will also feature dry ports and operation centres capable of handling over 1.5 million tonnes of cargo annually.
The region will also benefit from a new international airport and a major expansion of the kingdom’s railway system, which will connect the main regions. In addition, major new highways are being constructed to link the kingdom through Hail with Jordan, Iraq and also Madinah.
Specialised clusters offer unique investment opportunities, officials added.
Knowledge Economic City
The SR25 billion ($6.66 billion) Knowledge Economic City in Madinah, is the first of its kind and the third economic city in Saudi Arabia to be initiated by Sagia.
The new city will be developed on a 4.8 million sq m land while the built-up area will be around nine million sq m attracting SR25 billion ($6.66 billion) worth of investments. The project will add 20,000 new jobs to the region, according to the developers.
The city will comprise various zones designed to complement each other; a technology and KBI zone; an advanced IT studies institute; an interactive museum on the life of Prophet Mohammed; a centre for Islamic civilisation studies; a campus for medical research and life sciences; an integrated medical services zone; a retail zone; a business district; residential zones including high rises, houses, and fully-serviced apartments; shopping malls; and a mosque with a capacity to accommodate 10,000 people.
