.jpg) The official website says, "The mega-project works closely with the Kingdom's on-going drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry.
"Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to two million residents."
KAEC is part of a $400 billion plan announced by the Saudi Government in 2008 to invest in Saudi Arabia's infrastructure and make the country less dependent on the oil industry as well as meet its population growth.
KAEC, named after the head of state and located near Jeddah, will be the first freehold city in Saudi Arabia, built by government controlled Emaar Economic City, at a cost of about $27 billion. Slated for completion in 2025, it will cover an area the size of Brussels.
KAEC will have the Red Sea's biggest port and an industrial district where corporate giants including the French oil company Total SA and US chocolate maker Mars will operate.
About 40 families already live in KAEC and Emaar Economic City plans to hand over 470 houses to buyers this year in the project's first phase. The second stage, including homes for 40,000, is scheduled for completion in 2014.
The other three cities under construction are Knowledge Economic City in Medina, Jazan Economic City in Jazan and Prince Abdul Aziz bin Mousaed Economic city in Hail. Two more economic cities are planned in Tabuk and the Eastern Province.
Fahd Al-Rasheed, Chief Executive Officer of Emaar Economic City, a company controlled by the Saudi Arabian government and Dubai's biggest property developer, said, "A lot of people want to invest in the Saudi market and see it as a frontier for real estate investment because of the population explosion here."
Foreign investors, individuals and companies, will be able to buy under the new Economic Cities Act issued almost two months.
Regulations putting the act into effect are expected soon and will cover issues such as foreclosures, repossessions and the creation of a land registry. |
